US weekly steel output hits 2019 low

Market: Metals
10/06/19

US weekly raw steel production fell to its lowest level of 2019 last week, led down by lower output in the Great Lakes.

Overall production dropped to 1.87mn st for the week ended 8 June, down by 15,000st from the prior week and the lowest since the final week of 2018, according to the American Iron and Steel Institute (AISI). Output rose by 3.3pc from the same week a year ago when the US produced 1.82mn st.

Mill capacity utilization dropped to 80.6pc from 81.2pc the previous week, the lowest since 12 January.

US weekly steel production has declined for five straight weeks amid weak flat-rolled steel prices and shortening lead times for new orders.

Northeastern mills increased output to 214,000st, up from 203,000st the previous week.

The rest of the country saw production fall, with mills in the Great Lakes leading the drop at 720,000st, a decrease from 741,000st the prior week.

Southern production dropped to 684,000st from 685,000st. Midwest mills edged down to 186,000st from 189,000st a week ago and western production dropped to 71,000st from 72,000st.

Year-to-date production was 43.1mn st, up by 6pc from the same period in 2018. Utilization for 2019 capacity stood at 81.5pc, compared with 76.7pc during the same period in 2018.

AISI's raw steel production tonnage is estimated and compiled using weekly raw tonnage production provided by 50pc of domestic producers and monthly production data for the remainder.

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