US crude steel production declined 2.1pc from last week’s historical low to 1,250mn nt with a capability utilization rate of 55.8pc for the week ending April 25, 2020 according to the American Iron and Steel Institute (AISI). Production declined 33.9pc compared to the same week a year ago.
The recent utilization rates have not been encountered in the US since Q3 2009. Capacity utilization dipped below 60pc in November 2008 and remained at those levels until October 2009. This year, the decline so far is attributed to weak steel demand because of COVID-19 related shut downs and policies.
Adjusted year-to-date, production decreased 8.3pc to 28.850mn nt, at a utilization rate of 75.4pc, from 31.449mn nt during the same period last year, when the capability utilization rate was at 81.5pc. Year-to-date capacity declined by 325,000nt to 38.263mn nt this year.
Compared to production in the previous week, the Northeast increased 9.5pc to 127,000nt along wit the Midwest that climbed up by 6.5pc to 132,000nt. The other three regions varied in declines with the Great Lakes sliding 1.4pc to 437,000nt, South declining 7.1pc to 501,000nt, and West declining 3.6pc to 53,000nt.
Compared to approximately the same week a year ago, the Northeast is producing at 63.2pc, Great Lakes 59.3pc, Midwest 70.2pc, South 72pc, and West 72.6pc of crude steel. The Great Lakes region encountered the greatest decline of 40.7pc compared to the same week a year ago. Data provided by American Iron and Steel Institute (AISI) with estimates of approximately 50pc of domestic producers.