Steel Markets
April Auto Sales Off to a Good Start for Q2
Written by Sandy Williams
May 3, 2016
U.S. automakers reported strong sales in April. WardsAuto expects the seasonally adjusted annual rate to reach 17.6 million units, surpassing last month’s rate of 16.6 million and 2015’s rate of 16.7 million. Volume sales for the month are expected to reach 1.51 million units exceeding the previous record for the month set in 2005.
Sales showed some slowing in first quarter, but April strength could mean higher sales through the typically strong summer. On the other hand, many analysts think the industry is reaching its peak and will begin to weaken. Consumers tempted by low gas prices and interest rates, however, continue to upgrade to newer vehicles.
“It’s a very nice rebound from the softness we saw in March,” said Jeff Schuster, senior analyst with IHS Automotive in Troy, Michigan. “The U.S. economy is set up pretty well to weather the global slowdown. The next several months will be the real test.”
Kelly Blue Book says the average new car price in the U.S. was $33,865 in April, up 1.9 percent from a year ago. U.S. light vehicle sales continue to be fueled by luxury SUVs and pick-up trucks.
“Following a disappointing March, we expect sales to get back on track in April,” said Kelley Blue Book analyst Tim Fleming. “Increased fleet sales and rising incentive spending among auto makers remain the factors to watch, but retail demand appears to be holding steady, signaling the industry’s strong run isn’t over quite yet.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Sheet market sources slam tariffs for prolonged demand slump
Tariffs are ultimately to blame for stagnant demand in the hot-rolled coil market, domestic market sources tell SMU.
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.