US crude steel production continues to decrease on both a weekly and annual basis as of December 14, 2024, according to data from the American Iron and Steel Institute (AISI). Total weekly production was recorded at 1.651 million net tons. This rate decreased by 1% w-o-w and by 3.2% y-o-y.
Capacity utilization rate, on the other hand, decreased by 0.8% on a weekly basis and increased by 0.1% y-o-y to 74.3%.
Significant decrease in annual data
From the beginning of 2024 until December 14, total crude steel production was 83,836,000 net tons. This represents a decrease of 2.3% compared to 85,832,000 net tons recorded in the same period last year. In the same period, capacity utilization rate decreased from 76.0% to 75.7%.
South leads regional production
In the week ending December 14, the southern region accounted for the largest share of US steel production with 682 thousand net tons. The Great Lakes region ranked second with 557 thousand net tons, while the Midwest region produced 225 thousand net tons. The Northeast and West regions produced 126 thousand and 61 thousand net tons, respectively.
Reasons for the decrease
Throughout 2024, the decrease in steel production is noteworthy. The capacity utilization rate, which experienced small fluctuations, could not offset the decrease in the general trend. Analysts say this decrease may be due to weakening global steel demand, economic uncertainties and fluctuations in global markets.
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