Image by Dreamstime.
The Washington-based American Iron and Steel Institute (AISI) has reported that in the week ending Nov. 14, steel output in the United States checked in at 1.58 million tons, up 0.4 percent from the previous week.
The stability occurred despite cases of COVID-19 rising to new highs in many states and governments in those states introducing or threatening to introduce additional workplace and social distancing restrictions.
The toll of COVID-19 on the steel sector remains visible, as one year ago in mid-November, more than 1.82 million tons of steel were produced, indicative of a 13.3 percent decrease year on year. Year to date, the U.S. has produced 18.7 percent less steel in 2020 compared with the year before.
For ferrous scrap recyclers, the commitment of steel mills to keep production levels steady is coming at the same time when some forms of scrap generation appear to be dropping.
According to a Nov. 16 report by Fastmarkets AMM, shredder operators in parts of the country are raising their scale prices to try to coax more scrap into yards in an effort to fill anticipated early December orders. Those orders are coming not just from domestic mills but also from eager overseas buyers in Turkey and Asia.
While the supply chase causes one form of aggravation for ferrous scrap processors, the ongoing domestic and global demand has brought with it fourth-quarter price stability that often is missing from a ferrous market known for October and November price drops.