Steel Markets

July Auto Sales Drop As Expected
Written by Sandy Williams
August 1, 2017
Automotive sales dropped sharply for most manufacturers in July. Edmunds and WardsAuto estimate total sales for the month to be 1.42 million units. The seasonally adjusted annual rate for July is expected to be 16.9 million, according to WardsAuto.
“July is historically a strong month, but with disappointing sales and inventories still building, something needs to give,” said Jessica Caldwell, Edmunds executive director of industry analysis in advance of Tuesday’s reports. “A lot is riding on late-summer sales events to help move vehicles before 2018 models start arriving at dealer lots.”
Of the top five auto manufacturers in the U.S., only Toyota had a year-over-year increase, squeezing out a 3.6 percent gain from July 2016. General Motors and FCA U.S. had double-digit losses of 14.0 percent and 10.0 percent, respectively. Ford sales fell 7.5 percent in July.
“There’s no denying the ongoing drop in auto sales, but this is a drop from record levels to near-record levels, unlike what happened in 2009,” said Karl Brauer, executive publisher for Autotrader and Kelley Blue Book. “After seven years of perpetual growth, it’s a tough wake-up call for some brands to face flat or slightly declining sales numbers.”
General Motors Chief Economist Mustafa Mohatarem said he expects to see sales pick up in the second half of the year.
“U.S. auto sales continue to moderate from last year’s record pace, but key U.S. economic fundamentals remain supportive of strong vehicle sales,” said Mohatarem. “Under the current economic conditions, we anticipate the second half of 2017 will be much stronger than the first half.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Hot-rolled market anticipates no change despite mill mark-ups
Domestic sheet market participants say recent spot price hikes from NLMK USA and Nucor will do little to shake-up stagnant market conditions. Price increases in the current market On Friday Oct. 24, NLMK customers learned that the producer’s hot- and cold-rolled prices increased $50 per short ton (st) and its coated products were $100/st higher. […]
Market sources say regional activity is dictating plate demand
Demand for plate on the spot market remains soft by comparison to years past. However, this week regional demand variations grew more pronounced.
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.
