Steel Products Prices North America
Domestic Mill Utilization Slipped Below 80% Last Week
Written by David Schollaert
February 28, 2022
Raw steel production by U.S. mills fell again last week, now down five out of the past six weeks. Domestic mills produced a total of 1,755,000 net tons in the week ending Feb. 26, while mill capacity utilization slipped back down to 79.7%, reported the American Iron and Steel Institute.
U.S. output was down 0.5% compared to the prior week but up 0.9% versus than the same year-ago period when production was 1,740,000 net tons. Mill capacity utilization last week saw a 0.4 percentage point decline from the prior week yet was 2.9 percentage points above the same period one year ago.
Adjusted year-to-date production through Feb. 26 totaled 14,562,000 net tons, at an average utilization rate of 81.2%. That’s up 2.9% from the same period last year when the utilization rate was 76.7% and production was 14,152,000 net tons, AISI said.
Production was down in four out of five regions last week; only the South district posted a week-on-week increase. The largest decrease versus the prior week in total tons was seen in the Midwest, down 6,000 net tons or 3.1%, while the West saw the largest percentage slip, down 7% or 5,000 net tons versus the prior week.
Below is production by region for the week ending Feb. 26: Northeast, 170,000 tons; Great Lakes, 597,000 tons; Midwest, 186,000 tons; South, 736,000 tons; and West, 66,000 tons – for a total of 1,755,000 net tons, down 9,000 net tons from the prior week.
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 first quarter 2022 is approximately 28.3 million tons.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Products Prices North America
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.
CRU: US longs prices remain mostly flat in October
CRU Senior Steel Analyst Alexandra Anderson shares insight into the current market for long steel products.