US steel production continued its steady climb through the middle of May 2026, with weekly output reaching levels not seen in more than six years. According to data published by the American Iron and Steel Institute, domestic mills produced 1.898 million net tons of raw steel in the week ending May 16, marking a 10.3% increase compared to the same period in 2025. Capability utilisation rose to 82.2%, up from 76.6% a year ago. Year-to-date output through mid-May stood at approximately 35.2 million net tons, 6.5% above the prior-year pace.
The production gains have been concentrated in the Southern district, which accounted for 853,000 net tons during the week, followed by the Great Lakes region at 533,000 net tons and the Midwest at 313,000 net tons. The Northeast and Western districts contributed 133,000 and 66,000 net tons respectively. Improved profit margins at domestic mills, supported by the 50% Section 232 tariff on steel imports, have encouraged sustained output increases throughout the first half of the year.
On the pricing front, Nucor Corporation raised its consumer spot price for hot-rolled coil by $10 per short ton in a customer letter dated May 18, bringing its offer to $1,090 per short ton. The California Steel Industries joint venture price was also raised to $1,140 per short ton. Lead times held steady at three to five weeks. Industry data indicated that the average US market spot price for HRC on FOB terms east of the Rockies stood at $1,080 per short ton as of May 12, reflecting a $5 per ton weekly increase.
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Despite the strength in finished steel prices and mill output, recycled steel scrap markets remained stagnant. Industry participants noted that warmer spring weather released significant material into the supply chain during March and April, which, combined with a weak export market, kept domestic scrap prices flat in May. Average scrap prices dropped approximately $20 per ton in April alone. However, conditions in the international scrap market could tighten later in the year, as increased US mill appetite and reduced Middle Eastern outbound shipments constrain global availability.
The widening spread between finished steel prices and scrap costs has improved margins for electric arc furnace operators in particular, and several US-based producers reported profitable first-quarter results. Whether the current production pace is sustainable will depend on whether downstream demand from construction and manufacturing holds through the summer months, or if the seasonal slowdown and elevated costs begin to temper buyer activity.
Team Lead - Market Research
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