Steel output in US retreats from previous week

Steel production figures, as reported by the Washington-based American Iron & Steel Institute (AISI), have shown a week-to-week decline of 1.3 percent in the United States for the week ending Nov. 28.

According to AISI, steel mills in the U.S. produced 1.56 million tons of steel last week, down 1.3 percent from the 1.58 million tons produced the week ending Nov. 21. The down week reverses a trend of rising production that has largely held consistent since early May.

Starting in late March, weekly U.S. steelmaking figures have shown declines in output compared with the comparable period in 2019 as COVID-19 and related restrictions affected demand for finished and semifinished steel.

In the week ending Nov. 28, weekly output was down 14.4 percent compared with the comparable week in 2019. Year to date, steel output in the U.S. is down 18.4 percent compared with production in the first 11 months of 2019.

The average steel mill capability utilization (or capacity) rate in 2020 has been 67.2 percent. That compares with an 80 percent average rate in the first 11 months of 2019.

Lower output at domestic mills could have an impact as mill buyers negotiate their scrap purchases in early December. However, a combination of tight scrap supply and persistent overseas demand appears poised to support prices in the near-term future.