According to the American Iron and Steel Institute (AISI), US steel mills produced a productivity rate of 61.7% for the week ending August 29. That figure is down from 63.0% recorded in the week ending August 22.
After a long period of weekly growth, the capacity utilization rate of the US steel sector declined last week.
According to the American Iron and Steel Institute (AISI), US steel mills were producing products at a capacity utilization rate of 61.7% in the week ending Aug. 29. That figure is down from 63.0% recorded in the week ending August 22.
Yield falls 2.1%
In terms of tonnage, production last week reached 1.38 million net tonnes, down 2.1% from the previous week.
On an annualized basis, production fell 24.9% last week. In the same week in 2019, production was 1.84 million net tonnes with a 79.1% capacity utilization.
For the year from the beginning of the year (until August 29), production reached 51.84 million net tons with a 66.0% capacity utilization.
Total volume from the beginning of the year to date has decreased by 20.1% compared to last year’s figure of 64.92 million net tonnes (when the capacity utilization rate reached 80.7%).
Despite the recovery in automotive demand, steel prices have not been supported by anything lately.
However, at the end of August, steel prices showed some signs of growth.
For example, after falling to $ 454 a piece as of August 20, the US HRC closed at $ 486 a piece last week. The price of HRC in the US is up 2.32% from the previous month.
Likewise, US HDGs traded sideways for most of August. After hovering at $ 698 apiece for most of the month, the price closed last week at $ 736 apiece. HDG price in the US rose 3.66% MoM.
Finally, the US HRC price also traded sideways for most of August. For most of the month, the price hovered at $ 640 a piece, and rose to $ 660 a piece last week. However, on a monthly basis, the price fell slightly (by 0.9%).