• Skip to main content

    Prices

    June 29, 2021

    Weekly Steel Production, Utilization Slip 0.2%

    Written by David Schollaert

    Raw steel production by U.S. mills totaled 1,835,000 net tons in the week ended June 26, down 0.2% compared with the week prior when production was 1,839,000 net tons. The average mill utilization rate was 82.7%, also down 0.2% week on week, based on the available data compiled and reported by the American Iron and Steel Institute (AISI). Last week’s output represents a 44.3% increase from year-ago levels, when production was just 1,272,000 net tons and utilization was a meager 56.8% as steel mills continued to manage coronavirus-related disruptions.

    The latest data from AISI indicates annual steelmaking production capacity was sideways for the first time in five weeks. The estimated annual capacity has decreased by 2.4% over the past four weeks, from 118.1 million tons to 115.3 million tons. The correction is in line with the associations’ ongoing review of its statistical process. As recently indicated, further changes are likely as permanently idled capacity is accounted for, while soon-to-be new capacity is introduced.

    David Schollaert

    David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

    Read more from David Schollaert

    Latest in Prices

    Plate supply squeeze tightens as demand presses higher

    The domestic plate market is showing few signs of relief for steel buyers. Lead times are stretching well beyond seasonal norms, spot availability has all but evaporated, and mills are drawing hard lines on contract volumes heading into 2027 negotiations. And the supply squeeze will likely intensify in a market that some industry sources say is structurally undersupplied because of stringent US trade and tariff policies. Imports have been arriving in larger volumes, and the expectation is they will continue to tick higher into 2027. The big question is whether those foreign tons will arrive in volumes sufficient to provide the relief steel consumers want.