U.S. Steel Production Declines Slightly in Early January 2025
Steel production in the U.S. continued to face a downturn during the week ending January 4, 2025, as domestic production of raw steel fell to 1,635,000 net tons. This represents a 1.3% decrease compared to the same week in 2024 when production stood at 1,656,000 net tons. The capability utilization rate for the period was 73.6%, just marginally lower than the 73.7% observed in the same week last year.
Despite the small decrease in steel output, the utilization rate of production capacity remained steady, indicating that steel mills are operating close to their potential but are still facing challenges in boosting production to match demand. The 1.3% decrease in output year-over-year is consistent with a slower steel market recovery and cautious output levels as the industry remains mindful of economic uncertainties and demand fluctuations.
Comparison with Previous Week’s Production
When compared with the previous week, the production for the week ending January 4, 2025, showed a further decline of 1.4%. The production for the week ending December 28, 2024, had been 1,658,000 net tons, with a slightly higher capability utilization rate of 74.7%. This drop in production from the previous week further reflects the ongoing challenges in the domestic steel market and suggests that steel mills are adjusting their output to meet current demand levels more effectively.
Regional Production Breakdown
The production decline was experienced across all U.S. steel districts, though the output levels varied regionally. The production data for the week ending January 4, 2025, shows the following breakdown in thousands of net tons:
• North East: 124 net tons
• Great Lakes: 544 net tons
• Midwest: 220 net tons
• Southern: 693 net tons
• Western: 54 net tons
These figures highlight that the Southern region remains the highest producer of steel, with 693 net tons, followed by the Great Lakes region, which produced 544 net tons. The North East and Western regions produced the least, with 124 and 54 net tons respectively. These numbers demonstrate the continued dominance of the Southern and Great Lakes regions in the U.S. steel production landscape.
Year-to-Date Adjustments
Looking at the year-to-date production figures through January 4, 2025, the U.S. steel industry has produced 1,635,000 net tons of raw steel at a utilization rate of 73.6%. This is again a 1.3% decrease compared to the same period last year, where production had reached 1,656,000 net tons with a similar utilization rate of 73.7%. The stability in the utilization rate suggests that, while overall output has dropped slightly, the capacity to produce steel remains consistent.
