Steel Markets

U.S Auto Sales Slide in April
Written by Sandy Williams
May 2, 2018
U.S. auto sales slipped in April after a robust March. WardsAuto estimated the seasonally adjusted annual rate at 17.1 million and actual light vehicle sales for the month at 1.35 million, down from 17.4 million and 1.5 million, respectively, from the previous month.
SUVs and pickup trucks led sales again this month, despite gas prices increasing at the pump. Fuel efficiency of SUVs “has improved dramatically,” said Mike Jackson, CEO of AutoNation.
“With fracking, I don’t see prices going to $5 or $6 a gallon, which is what it would take to change consumer behavior,” said Jackson.
Ford sales dipped 4.7 percent in April. “We believe the industry continues to operate at a very healthy level,” Ford’s U.S. sales chief Mark LaNeve said. “With a plateauing market, you are going to get some bumpiness.
Ford announced last month that it will quit producing sedans in North America, keeping only the Mustang and crossover version of the Focus in the U.S.
General Motors is no longer reporting monthly sales but said on Wednesday that it is increasing SUV production after its strongest first quarter ever for its Acadia and Terrain SUVs. Global SUV sales were up 9.4 percent in the first quarter, said GM.
Honda light truck sales are at record levels, but the company has no plans to abandon its passenger car customers.
“Even as we increase our sales of light trucks to record levels, we remain committed to delivering a balanced lineup of cars and light-truck offerings for our customers,” said Henio Arcangeli Jr., senior vice president of the Automobile Division & general manager of Honda sales. “Our flexible manufacturing capabilities allow us to evolve our production mix in real-time to meet these continued shifts in consumer demand. Moreover, we recognize not all customers in the market want a truck or SUV, so growth opportunities still exist within the passenger car side of our business.”
Nissan sales plunged 28 percent in April with passenger car sales down 35 percent and SUV/truck sales down 23.1 percent. “April was an extremely challenging month with intense competition in the U.S. market,” Nissan said in a statement.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

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 […]

CRU Insight: A 50% S232 tariff will raise US steel prices and shift trade flows
This CRU Insight examines how the increase in Section 232 tariffs on steel to challenging levels will lead to significatively higher prices for end consumers in the US market.

Steel market shakes tariffs off amid weak demand
Service centers and distributors contend that weak demand is to blame for the flattening of domestic steel spot prices, as reflected in Nucor Steel’s weekly Consumer Spot Price (CSP) notice. On Monday, the Charlotte, North Carolina-headquartered steel producer left prices unchanged from the previous week. Nucor has maintained prices of plate produced in Brandenburg since March 28.

SMU’s May at a glance
SMU’s Monthly Review provides a summary of our key steel market metrics for the previous month, with the latest data updated through May 30.