Steel output continues to waver

The Washington-based American Iron and Steel Institute (AISI) says in the week ending July 16, 2022, steel production in the United States checked in at 1.74 million tons at a capability utilization (mill capacity) rate of 78.9 percent.

The weekly figure is down 0.6 percent from the previous week ending July 9, 2022, when production was 1.75 million tons and the rate of capability utilization was 79.3 percent.

One year ago, in the week ending July 16, 2021, output was 1.86 million tons, representing a 6.7 percent decrease year on year. The mill capacity rate one year ago was 84.4 percent.

Year-to-date steel production in the U.S. through July 16, 2022, stands at 49.35 million tons, which is down 2.5 percent from the 50.62 million tons made during the same period last year.

The mill capacity rate year to date, at 80.4 percent, is not greatly changed from last year’s 80.1 percent rate through July 16, 2021.

The stagnant steel situation in the U.S. will not help the price of ferrous scrap, which already is suffering from a lack of export market demand. Pricing service Argus has calculated the No. 1 busheling grade as having a $480 per ton national average price in the early July buying period. That means its value dropped a whopping $150 per ton, or nearly 24 percent, in just 30 days.