Steel Products Prices North America
Domestic Mills Fall Below 60 Percent of Capacity
Written by Tim Triplett
April 14, 2020
U.S. raw steel production continued to plummet last week as domestic steelmakers took further steps to adjust output to weak steel demand as the economy struggles with the coronavirus. Production in the April 11 week totaled 1,256,000 net tons with the mills operating at an average capability utilization rate of 56.1 percent, down from a rate of 68.5 percent in the week ending April 4, reported the American Iron and Steel Institute. The current week’s production represents a 33.6 percent decrease from the same week last year. The last time raw steel production was this low was the week ending July 25, 2009, during the Great Recession, when 1,254,000 tons were produced at a utilization rate of 52.6 percent.
AISI’s capacity utilization figures are somewhat misleading as they do not factor in furnaces that have been idled by various mills in the past few weeks. AISI considers a furnace to be part of a mill’s capability until it has been shut down permanently. Thus, the mills that remain in production are most likely operating above the levels currently reported by AISI.
Adjusted year-to-date production through April 11 totaled 26,323,000 net tons at an average utilization rate of 77.9 percent–down 4.9 percent from production in the same period last year when the average utilization rate was 81.5 percent.
Following is production by district for the April 11 week: North East: 104,000 net tons; Great Lakes, 430,000 net tons; Midwest, 122,000 net tons; South, 556,000 net tons; and West, 44,000 net tons, for a total of 1,256,000 tons. Production declined in all regions by a total of 278,000 tons.
The raw steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnage from 50 percent of the domestic producers combined with monthly production data for the remainder. Therefore, this report should be used primarily to assess production trends. The AISI monthly production report provides a more detailed summary of steel production based on data supplied by companies representing 75 percent of U.S. production capacity.
Tim Triplett
Read more from Tim TriplettLatest in Steel Products Prices North America
SMU Community Chat: Timna Tanners on ‘Trumplications’ for steel in 2025
Wolfe Research's Managing Director Timna Tanners discusses the 'Trumplications' for steel in the coming year in this week's SMU Community Chat.
Nucor raises hot rolled spot price to $750/ton
Nucor raised its weekly consumer spot price (CSP) for HRC this week to $750/short ton.
SMU price ranges: Most sheet and plate products drift lower
Steel sheet prices mostly edged lower for a second week, while plate prices slipped for the third consecutive week.
Nucor drops HRC price to $720/ton
After holding its weekly spot price for hot-rolled (HR) coil steady for three weeks at $730 per short ton (st), Nucor lowered the price this week by $10/st.
SMU price ranges: Sheet slips, plate falls to 45-month low
Steel sheet and plate prices moved lower this week as efforts among some mills to hold the line on tags ran up against continued concerns about demand.