­­U.S. Steel Capacity Utilization: The total tonnage for the week ending January 27th was 1.680 million net tons, at a capacity utilization rate of 75.6%. The year-to-date tonnage output is 6.798 million net tons, at an average capacity utilization rate of 76.2%. In 2023, the same output total was 6.452 million net tons, at an average capacity utilization of 72.2%.

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 January 2024 since the end of 2023.

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.