Steel Products
January 9, 2013
AISI Estimated Raw Steel Production & Capacity Utilization Rates
Written by John Packard
The American Iron & Steel Institute (AISI) reported their estimated raw steel production data for the week ending January 5, 2013. According to AISI estimates the U.S. steel industry produced 1,756,000 net tons of raw steel last week. This represents a decrease of 3.9 percent compared to the week earlier and is 7.7 percent lower than the same week one year ago.
The AISI estimates the capacity utilization rate to be 72.6 percent. The estimate is based on a much reduced maximum production rate of 30.8 million tons for the 1st Quarter 2013 down from 32.3 million tons from 1Q 2012 and 32.7 million tons for 4Q 2012. So, when you consider the production rate to be 7.7 percent less than one year ago remember the capacity was much higher at that time than it is currently. What is probably more relevant at this time is to compare total tons produce as opposed to capacity utilization rates.
