Steel Markets

Auto Sales Top 17 Million for Fourth Year
Written by Sandy Williams
January 6, 2019
U.S. auto sales topped the 17 million mark for the fourth year in a row. Total sales for the year are estimated at 17.2 million to 17.3 million vehicles.
“New-vehicle sales were surprisingly strong in 2018 despite late cycle headwinds from higher interest rates and more nearly-new competition in the used market,” said Jonathan Smoke, chief economist, Cox Automotive. ”The key positive factor was stimulated demand from tax reform, which strengthened retail demand as the year progressed and also enabled strong gains in fleet sales.”
Cox Automotive analyst Michelle Krebs added that consumers were also wary of tariffs by the Trump administration that would add to vehicle costs, prompting sooner-than-planned purchases.
December sales were mixed for automakers with Ford posting an 8.8 percent drop to 220,774 vehicles, while FCA U.S. sales gained 14.3 percent year-over-year to 196,520 vehicles. General Motors announced fourth-quarter deliveries totaling 785,229 units, a decline of 2.7 percent from fourth-quarter 2017. Electric car producer Tesla announced that fourth-quarter deliveries were up 8 percent from the third quarter to 90,700 vehicles.
The forecast for 2019 predicts fewer sales overall, but a continued appetite by consumers for SUVs and pickups. Higher interest rates are perceived as the biggest challenge for the coming year. Cox Automotive expects sales to slip to 16.8 million units in 2019.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...

Great Lakes iron ore cargoes down in September as Cleveland tonnage slips
Iron ore shipments from US Great Lakes ports fell sharply in September, per the latest from the Lake Carriers’ Association (LCA) of Westlake, Ohio.

HVAC equipment shipments down through August
Although total HVAC shipments fell in August, YTD volumes remain relatively strong. Nearly 15 million units were produced in the first eight months of the year, the fourth-highest rate in our 19-year data history.

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.