Steel Products Prices North America

Busy Mills Reach Utilization Rate of 85%: AISI

Written by David Schollaert

August 3, 2021

U.S. mills are producing steel at nearly full capacity. The average utilization rate for U.S. mills reached 85.0% in the week ending July 31, while raw steel production totaled 1,876,000 net tons, according to the American Iron and Steel Institute (AISI).

Weekly output rose for the fifth straight week, up 0.4% compared to the week prior when production was 1,868,000 net tons and average utilization was 84.6%. Last week’s production total represents a 39.0% increase from year-ago levels, when output was limited to 1,350,000 net tons and utilization to 60.3% due to the pandemic.

Adjusted year-to-date production through July 31 was 54,555,000 net tons, at an average utilization rate of 80.0%. That’s up 19.1% from the same period last year when the utilization rate was 66.7% and production was 45,814,000 net tons, AISI said.

Following is production by district for the July 31 week: North East, 156,000 net tons; Great Lakes, 632,000 net tons; Midwest, 199,000 net tons; South, 815,000 net tons; and West, 74,000 net tons, for a total of 1,876,000 net tons. Production was up 8,000 net tons compared to the week prior. Decreased output in the Great Lakes, Midwest and West districts was offset by increased output in the North East and South districts.

WeeklyRawSteelProd Wk31

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. 

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst 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. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

Read more from David Schollaert

Latest in Steel Products Prices North America