Production in the south helped push US steel utilization rates to their highest levels since 2008.
Capacity utilization rates at US steel mills rose to 83.6pc for the week ending 10 July, the highest level since the week ending 22 September 2008, according to data from the American Iron and Steel Institute (AISI). The September 2008 utilization figure was recorded as the global economy was in recession, with US utilization rates sliding just three months later to a low of 33.5pc.
The 10 July utilization rate is up from 83pc in the prior week and more than 23 points higher than the 60.3pc recorded in the same period of 2020, when the US economy was recovering from Covid-19-related economic shutdowns that caused a recession in the first half of 2020. Capacity utilization hit a recession low of 51.1pc in the week ended 2 May 2020.
Raw steel production of 1.85mn short tons (st) for the week ending 10 July is up by 10,000st compared to the prior week, and an increase of 37pc compared to the same period of 2020. .
Compared to the prior week steel production in the south jumped by 32,000st to 804,000st, marking the first time AISI data showed weekly southern steel production had ever surpassed the 800,000st mark.
In the west, production was flat at 76,000st, while production in the Midwest dropped by 11,000st to 191,000st.
Production in the Great Lakes fell by 6,000st to 642,000st, while northeastern production fell by 5,000st to 139,000st.
Year-to-date capacity utilization for 2021 was at 79.2pc, up significantly from the 67.7pc utilization rate recorded for the same period of 2020. US mills produced 48.75mn st through last week, up by 17pc compared with 41.77mn st during the same period last year.
AISI's raw steel production tonnage is estimated and compiled using weekly data provided by 50pc of domestic producers and monthly data for the remainder.
Source: https://www.argusmedia.com/en/news