Steel Markets
Auto Sales Chilled in February
Written by Sandy Williams
March 2, 2019
U.S. light vehicle sales in February missed analysts’ forecasts, falling 2.8 percent year-over-year, reported Edmunds.com. Sales were estimated at 1.26 million last month with a seasonally adjusted annual rate of 16.6 million units, down from 17.01 million a year ago. Sales are forecast to remain strong in 2019, but slower than in recent record years.
Interest rates on new car loans averaged 6.66 percent in February, their highest level in 10 years, according to Edmunds. Slowing sales were blamed on rising interest rates, higher vehicle prices and winter weather, along with tariffs on aluminum and steel.
“Shopping conditions are pretty unfavorable for consumers across the board, and even those with good credit are having trouble finding compelling finance offers,” said Jeremy Acevedo, Edmunds’ manager of industry analysis. “As rising vehicle costs and interest rates continue to compromise affordability, more shoppers might find themselves priced out of the new vehicle market.”
FCA sales slipped 2 percent in February and could have been worse if not for a 24 percent jump in the Ram truck brand. FCA also reported a 50 percent decline in sales of its Fiat brand.
“The overall industry is starting off slower due in part to weather, the U.S. government shutdown, and concern over tax refunds,” said FCA U.S. Head of Sales Reid Bigland. “We still see a strong, stable economy and anticipate any lost winter sales will be made up in the spring.”
Automakers remain concerned that the White House will follow through on a 25 percent tariff on imported cars, which will damage both demand and profits.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.
USS, government officials give update on Clairton Coke Works incident
U.S. Steel, Allegheny County executive Sara Innamorato, and Pennsylvania Gov. Josh Shapiro clarified details from early reports about the Clairton Coke Works facility explosion just one day earlier.
Hot-rolled spot market conditions linger, prices slip
Market participants said they have high hopes that the stable hot-rolled spot market will improve as the year rolls on.
Discontentment brews in plate market with flat, status-quo pricing
Sources in the carbon and alloy steel plate market said they are less discouraged by market uncertainty resulting from tariffs or foreign relations, but are instead, eager to see disruption to the flat pricing environment.
Dodge Momentum Index surges in July
The Dodge Momentum Index (DMI) jumped 20.8% in July and is now up 27% year-to-date, according to the latest data released by Dodge Construction Network.