Steel Products Prices North America

Weekly Raw Steel Production Dips Slightly

Written by David Schollaert

December 15, 2020

Weekly raw steel production by U.S. mills totaled 1,567,000 net tons in the week ending Dec. 12, down slightly from 1,579,000 week on week. The operating rate was 70.9 percent, down 0.8 percent from 71.4 percent the week prior, based on the American iron and Steel Institute’s calculations, which include idled capacity. Actually, despite the marginal slip in raw steel production, most flat rolled mills are running full out as demand challenges the tight supplies. Present capacity utilization is down 13.7 percent compared with year-ago levels.

Adjusted year-to-date production through Dec. 12, 2020, totaled 75,332,000 net tons, at an average mill utilization rate of 67.3 percent. That is down 18.2 percent from the same period last year, when the utilization rate was 79.8 percent, AISI said.

Following is production by district for the Dec. 12 week: North East: 144,000 net tons; Great Lakes, 558,000 net tons; Midwest, 165,000 net tons; South, 628,000 net tons; and West, 72,000 net tons for a total of 1,567,000. The South region was the only one to report decreased output compared to the week prior.

Note: 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. Capability for fourth-quarter 2020 is approximately 29.1 million tons, compared to 30.4 million tons for the same period last year and 29.4 million tons for the second quarter of 2020.

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.

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