Steel Markets

NAFTA Vehicle Production Exceeds 16 Million Units
Written by Peter Wright
December 19, 2013
In a rolling 12 months through November, light vehicle production (automotive) in NAFTA reached 16,093,000 units, a level not seen since May 2003. In three months through November production was up by 9.4 percent year over year. Light trucks, which include crossovers, are surging faster than cars, the year over year growth rates were 15.4 percent and 2.4 percent respectively.
The growth of light vehicle production by country year over year was: US 14.2 percent, Canada 2.0 percent and Mexico negative 0.1 percent. The US continues to be the success story of NAFTA auto production (Figure 1), though it must be said that the US had the more ground to make up from the recession. The growth of medium and heavy truck production has stalled overall and become negative in Canada and Mexico (Figure 2). Growth rates for this class of vehicles in three months through November year over year were, total NAFTA 1.4 percent, US 3.7 percent, Canada negative 15.6 percent and Mexico negative 1.4 percent.
US sales of light vehicles surged in November and are on track for a 15.5 million unit year. Moody’s Economy.com expects sales to strengthen further as the economy gains momentum in 2014 and 2015 with sales of 16.7 million and 16.6 million units respectively.

Peter Wright
Read more from Peter WrightLatest in Steel Markets

Week in Review: Sept. 29 -Oct. 3
Let’s take a quick tour of some key stories from SMU in the week of Sept. 29 - Oct. 3.

Hot-rolled coil sources lament stagnant conditions
Participants in the hot-rolled sheet market expressed frustration with the continuing lack of demand this week.

Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."

ITC’s final ruling: Dumped, subsidized CORE imports are harming domestic market
The US International Trade Commission (ITC) finds that corrosion resistant steel (CORE) imports from 10 countries have caused material damage to domestic product producers, according to the ITC’s statement.

HR buyers report mixed market conditions
Hot-rolled coil market participants said they’re staying on their toes amid a market that continues to be characterized by uncertainty. A veteran Midwest-based service center operator contends that current conditions are unprecedentedly volatile. Being flexible with customers and strategic with mills is the only way to navigate through the uncertainty, he said. “No one wants […]