Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US raw steel production increased by 0.1pc to 1.58mn nt (1.44mn mt) with a capacity utilization rate of 71.5pc for the week ended November 21, 2020, according to the American Iron and Steel Institute (AISI).  


The US took three months to breach the 70pc utilization barrier after it reached 60pc capacity in the second week of August. Since then, production growth has slowed down with production trending flat to slightly up on a weekly basis. However, a large deficit is still seen in the annual comparison, due to the impact of the COVID-19 pandemic on the steel industry.


Compared to the same week in 2019, steel output declined by 13.2pc from 1.82mn nt, and capacity utilization fell by 7.3pc. From January to Nov 21, production declined by 18.6pc to 70.5mn nt from 86.6mn nt during the same period in 2019. Total capacity declined by 2.99mn nt on an annual basis for the week ended November 21, 2020.         


Regionally, compared to the same week a year ago, production in the North East declined by 49pc to 136,000nt; Great Lakes’ output fell by 24.3pc to 541,000nt; Output in the Midwest dropped by 13pc to 170,000nt; the South’s production decreased by 7.6pc to 665,000nt, and the West’s output moved down by 8pc to 70,000nt. 


Compared to last week, the regions’ production decreased, save for the southern region, where output rose by 6pc to 665,000nt from 627,000nt in the prior week.


The crude steel tonnage provided by AISI is compiled by combining weekly production figures from 50pc of domestic producers and monthly production data. 

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