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Researched by Industrial Info Resources (Sugar Land, Texas)--Steel shipments and raw steel production continue to increase in the U.S., while steel project investments are on the rise, as the industry benefits from the Trump administration's tariff on steel imports. The improved situation in the U.S. has led to the announcement of several new steel mill projects being tracked by Industrial Info.
The American Iron and Steel Institute (AISI) reported this week that for the month of July, U.S. steel mills shipped more than 7.9 million net tons, a 5.8% increase from nearly 7.5 million net tons shipped in July 2017. Shipments for the first seven months of this year were 55.2 million net tons, a 4.3% increase over shipments in the same period of 2017.
The steel industry trade group reported last month that total and finished steel imports into the U.S. for this year through July were 20,862,000 and 16,190,000 net tons, down 10.1% and 10%, respectively, versus the same period in 2017.
The AISI also reported this week that adjusted year-to-date production through September 8 was 64,876,000 net tons, at a capability utilization rate of 77.3%. That is up 4.1% from the 62,292,000 net tons during the same period last year, when the capability utilization rate was 74.4%.
In imposing a 25% tariff on foreign steel, the Trump administration maintains the move was necessary to bolster the ailing domestic steel industry. Among other things, the tariff is aimed at increasing the domestic production utilization rate. A report issued in early 2018 by the Department of Commerce said an 80% utilization rate is the minimum rate needed for the long-term viability of the steel industry.
For just last week, the domestic capability utilization rate reached 80.2%, according to the AISI.
AISI Chief Executive Officer Thomas Gibson wrote in August that the steel import tariff was "absolutely necessary."
Imports took 27% of the U.S. market for finished steel products last year, Gibson said, the third highest share on record. More than 100,000 tons of steel on average came into the U.S. every day last year, he added.
Industrial Info is tracking more than $10 billion in U.S. steel works and blast furnace projects that have a high or medium probability of moving forward as planned. The Trump administration says the 25% tariffs, which took effect on June 1, are helping to revitalize the industry. For more information, see August 16, 2018, article - U.S. Steel Mill Shipments Rise 4.1% in First-Half 2018.
Last week, Nucor Corporation (NYSE:NUE) (Charlotte, Kentucky) announced plans to further expand its flat-rolled sheet steel mill in Ghent, Kentucky. The $650 million investment, which was approved by the company's board of directors, will increase the production capability at the mill from 1.6 million tons per year to about 3 million tons per year, and will increase the maximum coil width of 73 inches.
The expansion will complement a hot band continuous pickle galvanizing line that is being built at the Nucor Steel Gallatin facility in Ghent, the company said.
"Together with the new galvanizing line, this expansion increases our presence in the important Midwest market, specifically in the automotive, agriculture, heavy equipment, and energy pipe and tube sectors," Nucor Chief Executive Officer Mike Ferriola said in a press release. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The American Iron and Steel Institute (AISI) reported this week that for the month of July, U.S. steel mills shipped more than 7.9 million net tons, a 5.8% increase from nearly 7.5 million net tons shipped in July 2017. Shipments for the first seven months of this year were 55.2 million net tons, a 4.3% increase over shipments in the same period of 2017.
The steel industry trade group reported last month that total and finished steel imports into the U.S. for this year through July were 20,862,000 and 16,190,000 net tons, down 10.1% and 10%, respectively, versus the same period in 2017.
The AISI also reported this week that adjusted year-to-date production through September 8 was 64,876,000 net tons, at a capability utilization rate of 77.3%. That is up 4.1% from the 62,292,000 net tons during the same period last year, when the capability utilization rate was 74.4%.
In imposing a 25% tariff on foreign steel, the Trump administration maintains the move was necessary to bolster the ailing domestic steel industry. Among other things, the tariff is aimed at increasing the domestic production utilization rate. A report issued in early 2018 by the Department of Commerce said an 80% utilization rate is the minimum rate needed for the long-term viability of the steel industry.
For just last week, the domestic capability utilization rate reached 80.2%, according to the AISI.
AISI Chief Executive Officer Thomas Gibson wrote in August that the steel import tariff was "absolutely necessary."
Imports took 27% of the U.S. market for finished steel products last year, Gibson said, the third highest share on record. More than 100,000 tons of steel on average came into the U.S. every day last year, he added.
Industrial Info is tracking more than $10 billion in U.S. steel works and blast furnace projects that have a high or medium probability of moving forward as planned. The Trump administration says the 25% tariffs, which took effect on June 1, are helping to revitalize the industry. For more information, see August 16, 2018, article - U.S. Steel Mill Shipments Rise 4.1% in First-Half 2018.
Last week, Nucor Corporation (NYSE:NUE) (Charlotte, Kentucky) announced plans to further expand its flat-rolled sheet steel mill in Ghent, Kentucky. The $650 million investment, which was approved by the company's board of directors, will increase the production capability at the mill from 1.6 million tons per year to about 3 million tons per year, and will increase the maximum coil width of 73 inches.
The expansion will complement a hot band continuous pickle galvanizing line that is being built at the Nucor Steel Gallatin facility in Ghent, the company said.
"Together with the new galvanizing line, this expansion increases our presence in the important Midwest market, specifically in the automotive, agriculture, heavy equipment, and energy pipe and tube sectors," Nucor Chief Executive Officer Mike Ferriola said in a press release. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
