Steel Products Prices North America

Weekly Raw Steel Production Slips, Down 0.6%

Written by David Schollaert

October 25, 2021

Domestic raw steel production edged down slightly after matching its pandemic-era high the week prior. Production by U.S. mills was estimated at 1,870,000 net tons in the week ending Oct. 23, while the average utilization rate was 84.7%, according to the American Iron and Steel Institute (AISI).

Output was down 0.6% compared to the week prior when production was estimated at 1,882,000 net tons and average utilization was 85.3%. Last week’s production total represents a 20.7% increase from year-ago levels when the market was still working its way back from the COVID-related blows. Output then was 1,549,000 net tons and utilization was 70.1%.

Adjusted year-to-date production through Oct. 23 totaled 77,019,000 net tons, at an average utilization rate of 81.3%. That’s up 20.3% from the same period last year when the utilization rate was 67.1% and production was 64,029,000 net tons, AISI said.

Production was down in four of the five regions last week, with only the Midwest reporting a week-on-week increase. Below is production by region for the week ending Oct. 23: Northeast, 176,000 tons; Great Lakes, 635,000 tons; Midwest, 201,000 tons; South, 782,000 tons; and West, 76,000 tons – for a total of 1,870,000 net tons, down 12,000 net tons from the prior week.

 WeeklyRawSteelProd Wk43

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 third quarter 2021 is approximately 29.0 million tons.

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.

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