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Steel production down nearly 19% this year

Steel production down nearly 19% this year

Steel production down nearly 19% this year

A worker inspects steel coil at Alliance Steel in Gary.

Great Lakes steel production rose by 12,000 tons last week but remains depressed by nearly 19% this year, according to the American Iron and Steel Institute.

Steel mills in the Great Lakes region, clustered mainly along the lakeshore in Northwest Indiana, made 556,000 tons of metal in the week that ended Nov. 14, down from 544,000 tons the previous week.

Steel production is down by 18.7% for the year, while steel capacity utilization has fallen more than 13 percentage points year over year, largely as a result of the coronavirus pandemic that greatly weakened demand.

Overall, domestic steel mills in the United States made 1.58 million tons of steel last week, up 0.4% from 1.573 million tons the previous week but down 13.3% as compared to 1.823 million tons the same time a year prior.

Steel demand started plummeting in mid-March when automakers like Ford, General Motors and Honda — some of the largest consumers of steel in North America — temporarily ceased production to curb the spread of COVID-19, forcing Northwest Indiana steel mills to idle operations and temporarily lay off hundreds of workers.

Demand since has been slowly rebounding, along with steel prices.

So far this year, domestic steel mills in the United States have made 68.95 million tons of steel, a 18.7% decrease compared to the 84.8 million tons made during the same period in 2019.

U.S. steel mills have run at a capacity utilization rate of 66.9% through Nov. 14, down from 80% at the same point in 2019, according to the American Iron and Steel Institute.

Steel capacity utilization nationwide was 71.4% last week, which was up from 71.1% the previous week but down from 78.8% at the same time a year ago.

Steel production in the southern region, a wide geographic swath that encompasses many mini-mills and rivals the Great Lakes region in output, was 627,000 tons last week, down from 639,000 tons the week before. Volume in the rest of the Midwest rose to 177,000 tons, up from 162,000 tons the week prior.

Gallery: U.S. Steel's long history in the Region


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Business Reporter

Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.

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