US steel mills churned out metal at a steel capacity utilization rate of 77.2% for the week ending Feb. 27, the American Iron and Steel Institute (AISI) reported.
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Steel capacity utilization gains
Last week’s rate marked a slight increase from the previous week, when steel capacity utilization reached 77.0%.
Production last week reached 1.75 million net tons.
The production total marked a 7.0% decrease from the same period in the previous year. Furthermore, capacity utilization during the same period in 2020 reached 81.3%.
In addition, production for the week ending Feb. 27, 2021, increased 0.2% from the previous week. Production during the week ending Feb. 20, 2021, reached 1.745 million net tons at a steel capacity utilization rate of 77.0%.
Meanwhile, adjusted year-to-date production through Feb. 27, 2021, totaled 14.36 million net tons at a capacity utilization rate of 76.5%. Output is down 8.4% year over year.
At the same point last year, steel capacity utilization had reached 81.9%.
By region, production during the week ending Feb. 27, 2021, totaled:
- Northeast: 155,000 net tons
- Great Lakes: 624,000 net tons
- Midwest: 181,000 net tons
- Southern: 715,000 net tons
- Western: 74,000 net tons
Steel prices continue to rise in the US, as buyers struggle to secure supply (even despite slowly gaining capacity utilization rates).
US hot rolled coil closed Monday at $1,204 per short ton, or up 9.65% from a month ago.
Meanwhile, US cold rolled coil rose 8.87% to $1,375 per short ton.
US hot dipped galvanized is up 7.12% to $1,475 per short ton.
Plate is up 9.77% to $1,079 per short ton.
Volatility is the name of the game. Do you have a steel buying strategy that can handle the ups and downs?