U.S. Steel Capacity Utilization: The total tonnage for the week ending February 24th was 1.727 million net tons, at a capacity utilization rate of 77.8%. The year-to-date tonnage output is 13.628 million net tons, at an average capacity utilization rate of 76.7%. In 2023, the same output total was 13.100 million net tons, at an average capacity utilization of 73.3%.

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 2023 since the end of 2022.

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.