U.S. Raw Steel Production Witnessed Marginal Decline in June

SEATTLE (Scrap Monster): The U.S. raw steel production during the week ended June 16, 2018 has recorded modest decline, when compared with the prior week as well as the comparable week in 2017. According to the American Iron and Steel Institute (AISI), the production decline is despite the series of industry-friendly trade actions by the Trump administration to protect domestic steel industry.

The U.S. domestic raw steel production totaled 1.740 million net tons (NT) in the week ending on June 16^th this year. The production declined marginally by 0.7% when compared with the production during the prior week. The U.S. steel output had totaled 1.753 million NT in the previous week ending June 9, 2018. When compared with the corresponding week last year, the output was down by 0.4%. The U.S. output had totaled 1.747 million NT in the week ending June 16, 2017.

The U.S steel mills recorded lower capacity utilization rate of 74.2% in the week ending on June 16, 2018. The mills had operated at a capacity of 74.8% during the prior week and at 74.9% during the corresponding week last year.

The combined steel output during the year through June 16, 2018 stands at 42.06 million NT at an average mill capacity rate of 75.4%. This is marginally higher by 1.7% when compared with the output of 41.34 million NT during the same period last year, when mills had reported lower capacity utilization rate of 74.4%.

The ongoing tariff war between the U.S and other world countries is likely to impact several steel consuming manufacturing sectors. The construction sector cost has recorded the sharpest year-on-year jump in May this year, surging higher by almost 9% from May 2017. The prices are likely to increase further, as new restrictions come online. This, in turn, may result in slowdown in construction sector activities.