Domestic Raw Steel Production at 5 Year Low

Estimated total raw steel produced for 2015 YTD is reported to be 23,145,000 tons, down 6.3 percent from the 24,701,000 tons produced during the same period in 2014. The average capacity utilization rate for 2015 YTD is estimated to be 72.9 percent, down from 77.0 percent for 2014 YTD.

Note that the total production capability figure for Q1 2015 is based on 30,400,000 tons versus 30,900,000 tons for Q1 2014 and 31,600,000 tons for Q4 2014. 

Week-over-week changes per district are as follows: Northeast at 191,000 tons, down 4,000 tons. Great Lakes at 591,000 tons, up 12,000 tons. Midwest at 217,000 tons, up 4,000 tons. South at 511,000 tons, down 45,000 tons. West at 90,000 tons, up 5,000 tons. Total production was 1,600,000 tons, down 28,000 tons.

SMU Note (1): A large drop in raw steel production is a good sign for the current market conditions. It means the inventory adjustments that need to be made at the service centers are happening. This adjustment, combined with a marginal spread between foreign and domestic prices which dampens the need to buy foreign steel will result in a much stronger domestic market in the 2nd Half 2015.

SMU Note (2): You can view the interactive graphic on weekly raw steel production below when you are logged into the website and reading the newsletter online. If you have not logged into the website in the past and need your username and password, contact us at info@SteelMarketUpdate.com or by calling 800-432-3475. If you need help navigating the website we would also be very happy to assist you.

{amchart id=”84″ Weekly Raw Steel Production from AISI}