US crude steel production increased by 1.2pc to 1.2mn nt (1.1mn mt) compared to a week ago, and achieved a capacity utilization rate of 54.6pc in the week ending June 20, 2019, according to the American Iron and Steel Institute (AISI).
Production fell by 34.3pc against the production during the same week a year ago at 1.9mn nt, when US mills achieved a capacity utilization rate of 80.1pc. According to an AISI industry report, 80pc, which was achieved in some months in 2018 and 2019, is still below the level the industry needs to achieve long-term sustainability. ArcelorMittal and other large mills have suggested 85-90pc utilization levels as necessary in the industry. COVID-19 dramatically weakened steel consumption, with some analysts forecasting 18-24 months before an 80pc utilization rate will be achieved.
Adjusted year-to-date production was 37.9mn mt, with a capacity utilization of 67.5pc, which declined by 18.4pc to 46.5mn mt at a 81.2pc capacity utilization during the same period last year.
Compared to a week ago, production increased in the South by 23,000nt to 526,000nt. All other US regions’ production declined marginally over the past week against production levels during the prior week. The Northeast declined by 4,000nt to 111,000nt, while the Great Lakes and Midwest only decreased by 2,000nt to 406,000nt and 129,000nt, respectively. The West, which only contributes 4.2pc of total US crude steel production, remained relatively stable at 52,000nt.
From total US crude steel, the Great Lakes produced 33.2pc, while the South produced 43pc for a cumulative total of 76.2pc.