Steel Markets
Ford, GM, and FCA Curtailing Production in January
Written by Sandy Williams
December 22, 2016
Surplus automotive inventory is causing major auto manufacturers to extend holiday shutdowns into January.
General Motors announced yesterday that it will idle five US auto assembly plants in January for periods of one to three weeks in an effort to reduce oversupply of sedans.
Ford Motor Company said it will shut operations down at the Kansas City Assembly plant during the first week of 2017 in response to high truck and van inventory. The time will be used to perform maintenance at the facility.
FCA will idle two of its Ontario plants from January 3-6 following the New Year’s Day holiday. A spokesperson for the company said the break will help to align production with demand.
Edmunds.com is expecting December sales to be down 0.3 percent year over year for an estimated seasonally adjusted annual rate of 1,629,011 vehicles. Automakers are still on track to inch past last year’s record sales by perhaps just 5,000 units, said Edmunds. Sales during the final week of December generally take a jump which will help push the sales total over the mark.
IHS Markit is lowering its forecast for number of vehicles sold in the U.S. during 2017 to 17.37 million from 17.5 million citing rising inventories and use of incentives by automakers.
The announcements by the automakers echo observations by steel service and distribution centers that auto sales are beginning to slow.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
AISI: Raw steel production bounces back
Domestic mill production rebounded last week, according to the latest production figures released by the American Iron and Steel Institute (AISI). Production had been historically strong over the summer months before softening in early October.
US sets Section 232 tariffs on trucks and buses
Medium- and heavy-duty trucks (MHDV) and buses imported to the US will start being charged Section 232 tariffs beginning Nov. 1.
Hot-rolled sources say demand continues to dwindle, prices feel arbitrary
Genuine demand, they stated, will return when the market feels stable again.
FabArc Steel Supply completes projects in Mississippi, Georgia
FabArc Steel Supply announced this week the completion of two large-scale projects in Georgia and Mississippi.
Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.