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

Domestic Output Declines Through 2024

U.S. steel production fell in 2024, reaching 80.5 million tons by November 30. That marks a 2.3% drop from 82.4 million tons in the same period last year. According to the American Iron and Steel Institute (AISI), steel mills operated at 75.8% capacity, slightly down from 76.1% in 2023. This signals softening demand or emerging challenges in the domestic steel market.

Weekly Trends and Regional Disparities

For the week ending November 30, output dropped to 1.64 million tons, down 2.9% from the same week in 2023 and 1% from the prior week. Regionally, the Southern district led with 690,000 tons, followed by the Great Lakes district at 544,000 tons. Meanwhile, the Midwest, Northeast, and Western regions posted lower figures. This suggests a regional imbalance in production trends.

Steel Imports Rise Despite Domestic Slowdown

Despite the decline in domestic output, steel imports climbed. In October, imports rose 12% month-over-month. For the first 10 months of 2024, imports were up 2.6% year-to-date. Semi-finished products—such as blooms, billets, and slabs—accounted for 5.56 million tons or 22.5% of total imports. Key suppliers included Canada, Brazil, Mexico, and South Korea. However, imports from China dropped sharply by 22.2% to just 411,000 tons. This shift reflects growing global concerns over overcapacity and trade imbalances.