Features
AISI: Raw steel production recovers to five-week high
Written by Brett Linton
October 28, 2024
Domestic raw steel production recovered for the third consecutive week last week, according to the latest figures released from the American Iron and Steel Institute (AISI). While up, output remains near one of the lowest rates recorded across 2024.
The total amount of raw steel produced by US mills was estimated to have been 1,660,000 short tons (st) in the week ending Oct. 26. Production increased 29,000 st, or 1.8%, from the prior week. Recall that earlier this month, production had dipped to a 20-month low of 1,606,000 st (Figure 1).
Raw production last week was 3.1% lower than the year-to-date weekly average of 1,712,000 st. Production is down by 0.2% compared to the same week one year prior when mill output totaled 1,664,000 st.
The mill capability utilization rate last week was 74.7%. This is up from 73.4% one week prior and up from 72.4% this time last year.
Year-to-date production has reached 72,729,000 st at a capability utilization rate of 76.4%. This is 1.7% less than the same period of last year when 74,002,000 st had been produced at a capability utilization rate of 76.4%.
Weekly production by region is shown below, with the weekly changes noted in parentheses:
- Northeast – 130,000 st (up 15,000 st)
- Great Lakes – 601,000 st (up 20,000 st)
- Midwest – 196,000 st (down 2,000 st)
- South – 675,000 st (down 11,000 st)
- West – 58,000 st (up 7,000 st)
Editor’s note: The raw steel production tonnage provided in this report is estimated and should be used primarily to assess production trends. The monthly AISI “AIS 7” report is available by subscription and provides a more detailed summary of domestic steel production.
Brett Linton
Read more from Brett LintonLatest in Features
Final Thoughts
Tariff-related noise aside, there is one basic factor keeping buyers on the sidelines. Despite recent declines, HR prices remain at historically high levels. And there is no obvious support to keep them there.
Get an inside look at steelmaking at SMU’s Steel 101 workshop
If you’re looking to build a solid foundation in steel or sharpen the knowledge you already have, the SMU Steel 101 Workshop is a great place to start. Our next workshop will be held in Memphis, Tenn. on June 10-11, 2025
AISI: Raw steel production climbs to 7-month high
US steel mills produced more raw steel last week than they have over the past seven months, according to the American Iron and Steel Institute.
Final Thoughts
United Airlines raised eyebrows earlier this month when it provided two forecasts for 2025 – one assuming a relatively stable economy and another assuming a recession. The reason? Uncertainty around the impact of President Trump’s policy shocks on the broader economy. And it sometimes feels like we’re seeing a battle between those two narratives (stable vs recession) play out within in the pages of this newsletter.
Price: Expect new trade shocks as Trump’s ‘reciprocal’ tariff negotiations continue
President Trump cast a wide net with the proposed, reciprocal tariffs. The negotiating stage will be critical to determining the success of his strategy. And for those suffering tariff whiplash, don’t expect the pace of change to slow down just because the reciprocal tariffs are entering a negotiating phase.