Steel Markets
Automotive Sales Slower in February
Written by Sandy Williams
March 2, 2017
Automotive sales slowed overall in February. Ford and FCA saw declines of 4 and 10 percent, respectively. There were still some strong sales among auto manufacturers, notably, GM up 4.2 percent, Nissan 3.7 percent, Subaru 8.3 percent, Mercedes-Benz 7.2 percent, and Volkwagen Group up 13.3 percent year-over-year.
WardsAuto puts light vehicle sales for February at a seasonally adjusted annual rate of 17.5 million. Total February sales were 1.326 million units, a 1.1 percent decline from a year ago.
Strong sales were attributed to the 13.5 percent year-over-year increase in incentives. Higher inventory is creating fiercer competition and there are some worries that discounting could lead to declining profitability if the trend continues.
Dealership inventory levels, according to Kelly Blue Book, rose to a 70 day supply from 77-78 days in February 2016.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CRU: Steel prices fall amid global demand weakness
The forceful headwinds bearing down on steel markets across the globe have created demand challenges and sent prices southward. The US, however, challenged the global trend.
Hot-rolled price hikes garner mixed reactions from the market
Several steel market sources say they were blindsided when mills increased spot prices for hot-rolled coils this week.
Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]