U.S. steel mills produced 1.93 million net tons of raw steel during the week ending March 16, according to the American Iron and Steel Institute (AISI).
Production for the week — which came at a capacity utilization rate of 82.9% — was up 5.7% compared with the same week the previous year but down 0.6% from the previous week.
Adjusted year-to-date production through March 16 reached 20.3 million net tons — up 6.7% compared with the same period in 2018 — at a capacity rate of 81.4%. For the same period in 2018, mills produced 19.0 million tons at a capacity utilization rate of 76.6%.
By region, the Great Lakes holds the top spot in terms of steel production for the year through March 16:
- North East: 226,000 net tons
- Great Lakes: 729,000 net tons
- Midwest: 205,000 net tons
- Southern (NYSE:SO): 711,000 net tons
- Western: 59,000 net tons
The U.S. steel sector’s capacity rate continues to climb on the heels of the Trump administration’s Section 232 action last year. In general, a capacity rate of 80% is considered a mark of a healthy industry.
U.S. steelmakers increased production in 2018, as they were able to compete against reduced import levels (steel imports into the U.S. were down 12% year over year in 2018).
According to the World Steel Association, the U.S. produced 86.7 million tons of crude steel in 2018, up from 81.6 million tons in 2017.
by Fouad Egbaria