Domestic steel production falls further, HVAC equipment shipments increase
In Majestic Steel's latest CORE Report, domestic raw steel production falls again. From the report:
U.S. mills produced an estimated 1,835k tons at a 78.8% utilization rate; this is down from 1,850k tons and a 79.5% rate previously. This is the lowest production level since early August 2018. Production increased in three of the five regions but was offset by large decreases in the Midwest and Southern regions. Production from the Southern region dropped the most again this week, sliding from 699k tons to 672k tons. Year-to-date production is now 5.9% above the same time frame from last year.
However, after sliding for four consecutive months, shipments of HVAC equipment have increased on a year-over-year basis in July. According to the report, July shipments totaled 1.794 million units, down from June but up 0.3% from 1.788 million units in July 2018. The report reads:
When looking on a year-over-year basis, to smooth out seasonality, both water heater and A/C & heat pump shipments were up, climbing 1.9% and 2.0%, respectively. The increase in water heater and A/C & heat pumps helped to overcome the 9.2% decline in furnace shipments. Year-to-date HVAC equipment shipments are now at 12.528 million units, down 1.8% from the same time frame last year.
To read the complete highlights from the report, which includes insights on spot iron ore pricing, zinc, employment and the consumer price index, visit majesticsteel.com.