Steel Products Prices North America
AISI: Steel Mill Utilization Tops 84.0%
Written by David Schollaert
July 20, 2021
The average utlization rate for U.S. steel mills reached 84.1% in the week ending July 17, while domestic raw steel production totaled 1,859,000 net tons, up for the third consecutive week, according to the American Iron and Steel Institute (AISI). Weekly output was up 0.4% when compared with the week prior when production was 1,852,000 net tons and average utilization was 83.6%.
Last week’s output represents a 37.7% increase from year-ago levels, when production was 1,350,000 net tons and utilization was just 60.3% as the pandemic continued to disrupt steel demand. Although production was up 0.4% week on week, AISI cut estimated annual production by 0.2% over the same period, and nearly 3.0% over the past eight weeks, in an attempt to adjust capacity data to better reflect current mill throughput. AISI presently estimates U.S. domestic mill capacity at 114.9 million tons, down from 118.0 million tons in May.
Adjusted year-to-date production through July 17 was 50,787,000 net tons, at an average utilization rate of 79.6%. That’s up 17.8% from the same period last year when the utilization rate was 66.7% and production was 43,114,000 net tons, AISI said.
Following is production by district for the July 17 week: North East, 146,000 net tons; Great Lakes, 632,000 net tons; Midwest, 199,000 net tons; South, 803,000 net tons; and West, 79,000 net tons, for a total of 1,859,000 net tons. Production was up 7,000 net tons compared to the week prior. Decreased output in the Great Lakes, and South districts was offset by increased output in the North East, Midwest, and West districts.
Note: The raw steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnage provided by approximately 50% of the domestic production capacity combined with the most recent monthly production data for the remainder. Therefore, this report should be used primarily to assess production trends. The AISI production report “AIS 7,” published monthly and available by subscription, provides a more detailed summary of steel production based on data supplied by companies representing 75% of U.S. production capacity. Given the large number of changes to steelmaking capability in the current rapidly evolving market environment, AISI is undertaking a comprehensive review of its raw steel production and capability utilization statistics to ensure that they accurately reflect market conditions. Any updates to capability will be phased in over several weeks. Capability for the second quarter 2021 is approximately 29.3 million tons.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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