Despite layoff announcement, domestic steel production up last week
Meantime, global steel production declined for the third consecutive month on a year-over-year basis.
Domestic raw steel production increased last week, according to a recently released report from Majestic Steel. Production is up after three consecutive weekly declines and recently announced layoffs at U.S. Steel.
According to the report, U.S. mills produced an estimated 1,844k tons at a 79.7 percent utilization rate. "This is up from 1,821k tons and a 78.7 percent rate previously." Additionally, steel production increased in three of the five regions, with the largest increase (in tons) coming from the Great Lakes region, where layoffs from U.S. Steel are expected to begin around April 1.
"Production from the Great Lakes region climbed from 653k tons to 681k tons. Year-to-date production continues to drop, now 3.5 percent above the same time frame from last year."
On the global front, steel production declined for the third consecutive month on a year-over-year basis. According to the report:
November global steel production totaled 147.791 million metric tons, down 1.3 percent from 149.766 million metric tons in November 2018. This is the lowest monthly output since February. Global production, ex-China, has now declined on a year-over- year basis for six consecutive months. Production from the US declined on a year-over-year basis for the fourth consecutive month, sliding to 7.233 million metric tons in November. Chinese production, while sliding on a month-over-month basis, was up from last year, climbing 3.4 percent to 80.287 million metric tons. Year-to-date global steel production is still up 2.7 percent from the same time frame last year.
In October, heating and cooling equipment shipments declined for the second consecutive month. "October HVAC equipment shipments totaled 1.505 million units, down 3.6 percent from September and down 2.4 percent from 1.542 million units in October 2018. While shipments of A/C & heat pumps increased, the declines from water heater and furnaces shipments pushed the total lower."
To view the full report, visit majesticsteel.com.