Steel capacity utilization ticks back up to 85.0%

U.S. steel capacity utilization picked back up to 85.0% for the week ending Aug. 21, the American Iron and Steel Institute (AISI) reported.
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Steel capacity rises

hot rolled steel
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U.S. steel capacity utilization rose to 85.0% from 84.7% the previous week. Steel output reached 1,877,000 net tons last week, up 0.4% from the previous week.
Meanwhile, steel output for the week ending Aug. 21 increased by 27.2% from the same week in 2020, when the capacity utilization rate reached 65.9%.
For the year to date, U.S. steel production totaled 60,173,000 net tons, at a capacity utilization rate of 80.4%. The year-to-date production total increased by 19.8% from 2020, when the rate reached 66.6% for the equivalent period.

Steel prices continue to gain

U.S. steel prices have embarked on an essentially uninterrupted rise over the last year.
While recent month-over-month gains are not hitting the double-digit marks we’ve seen over the last year, prices are still moving upward.
U.S. hot rolled coil closed Monday at $1,883 per short ton, or up 3.98% month over month. Meanwhile, U.S. cold-rolled coil closed at $2,088 per short ton, or up 4.56%.
Meanwhile, hot dipped galvanized rose by 2.97% to $2,184 per short ton.

Nucor acquires steel rack solutions provider for $370M

In steel sector M&A news, Nucor Corporation on Monday announced it had acquired Hannibal Industries, Inc., for a cash price of $370 million.
“We are excited to officially welcome our Hannibal teammates as part of the Nucor team,” said Giff Daughtridge, president of Nucor’s sheet and tubular products division. “Adding steel racking solutions to our product portfolio expands our ability to serve our customers in the fast-growing warehouse and distribution market. This acquisition complements our existing product capabilities in this area.”
Hannibal Industries, Inc., is headquartered in Los Angeles and produces 150,000 tons of steel products annually, according to information on its website.
With volatile steel markets, knowing which strategy to execute and when can make all the difference between saving and losing money. See how MetalMiner looks at different market scenarios.

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