­­U.S. Steel Capacity Utilization: The total tonnage for the week ending January 28th was 1.635 million net tons, at a capacity utilization rate of 73.1%. The year-to-date tonnage output is 6.452 million net tons, at an average capacity utilization rate of 72.2%. In 2022, the same output total was 9.030 million net tons, at an average capacity utilization of 82.0%.

Figure 1 shows production on the left-hand scale and capacity utilization as a percentage on the right-hand scale. Capacity utilization and production picked up at the beginning of June 2020 since the Covid-19 outbreak.

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