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­­U.S. Steel Capacity Utilization: The total tonnage for the week ending June 27th was 1,240 million net tons, at a capacity utilization rate of 55.4%. The year to date tonnage output is 40,627 million net tons, at an average capacity utilization rate of 68.1%. In 2019, the same output total was 49,476 million net tons, at an average capacity utilization of 81.6%.

Figure 1 shows production on the left-hand scale and capacity utilization as a percent on the right-hand scale. Capacity utilization and production picked up at the beginning of the year as is typical for January and February.

At Gerdau, we track US steel production and capacity utilization to keep an eye on the overall health of the US steel industry. We feel it is important to understand the forces that influence steel demand to include the strength of the US economy and import penetration.