Fundamental Flash Report
US Domestic Steel Production Flash Report
Takeaway:
Domestic production increased for the 3rd week in a row, now up to 1,728k st/pw. Overall, while production has increased since the end of 4Q23 and beginning of 1Q24, we only briefly touched the historical average of 1,744k in early April. This level of production compared historical terms suggests that demand has been somewhat muted, given the fact that spot prices have been under pressure all year.
Domestic raw steel production climbed to 1,728k for the week ending on May 18th. This caused the 4-week moving average to increase for the first time in 4 weeks and kept it above the 1.7M level.
Overall Impact:
In the 14 weeks since the 4-week moving average pushed up above that 1.7M level, spot prices have been in a steady grind lower. Down $176, or 18.8% overall, with a brief bounce in March.