U.S. Steel Production Slows in 2024 Amid Declining Capacity Utilization and Rising Imports

Decline in U.S. Steel Output in 2024
Steel production in the United States has experienced a decline in 2024, with the total output reaching 80.5 million tons through November 30. This represents a 2.3% drop compared to 82.4 million tons produced during the same period in 2023. The American Iron and Steel Institute (AISI) reports that mills in the U.S. have been operating at an average capacity utilization rate of 75.8%, slightly down from the 76.1% utilization rate recorded in the first 11 months of 2023. This indicates a slowdown in steel manufacturing, suggesting a reduction in demand or other industry challenges affecting output levels.

Weekly Production and Regional Output Variations
Steel production in the U.S. showed a further decline in the week ending November 30, with a 2.9% year-on-year drop compared to the same week in 2023, totaling 1.64 million tons. Additionally, production was down 1% from the prior week. The AISI data reveals regional production patterns, with the Southern district leading the way, producing 690,000 tons, followed by the Great Lakes district at 544,000 tons. Other regions, such as the Midwest, Northeast, and Western districts, reported lower output figures, indicating a possible uneven distribution of steel production across the country.

Steel Imports Surge, Particularly in Semi-Finished Products
While U.S. domestic production is slowing, steel imports have risen, contributing to the overall supply in the market. In October, U.S. steel imports increased by 12% compared to the previous month. After 10 months in 2024, steel imports have risen by 2.6% year-to-date. Notably, the import of semi-finished products, including blooms, billets, and slabs, has been significant, with approximately 5.56 million tons imported, representing 22.5% of total imports. The largest sources of imported steel to the U.S. remain Canada, Brazil, Mexico, and South Korea. Meanwhile, steel imports from China have decreased significantly, with a 22.2% drop compared to 2023, amounting to just 411,000 tons in 2024. This reduction in Chinese imports comes amid global concerns about steel overcapacity and trade imbalances.