Steel Markets
U.S. Auto Sales Strong in July, But Down 2% in First Half
Written by Sandy Williams
August 2, 2019
U.S. auto sales appeared to do well in July despite some cooling of the market. Toyota, Honda, Subaru and Hyundai all posted gains for the month. Although Ford, General Motors and FCA no longer report monthly data, analysts suggest that the Big Three also saw sales increase in July.
Cox Automotive said the auto market remained strong last month. “July sales are coming in near where we expected – a slightly slower pace than the YTD average,” said Charlie Chesbrough, Cox senior economist. “Clearly, the market remains on solid ground and buyers are still in the new-car market even with higher prices. Strong sales of some small cars may suggest that affordability shoppers have not entirely abandoned the new-vehicle market. Given the strength of used-vehicle prices, and supply constraints limiting selection, more interest in lower priced new vehicles is not surprising.
“Our full-year forecast for the new-vehicle market in the U.S. remains at 16.8 million,” said Chesbrough. “July’s results will not alter the outlook. And while the Fed’s interest rate cut yesterday will help contain borrowing costs, we do not think the impact on car sales will be much, and not for a while.”
Kelly Blue Book estimates the average transaction price for a new vehicle in July was $37,169, down 0.8 percent from June but up 3.5 percent from a year ago.
“While July is expected to come in below a 17-million SAAR pace, the industry average transaction price continued its steady rise, up 3 percent year-over-year,” said Tim Fleming, analyst for Kelley Blue Book. “Trucks were the big story in July as new mid-size and full-size offerings helped to drive truck prices up about 3 percent while contributing to sales growth in this down market. With the new 1500 trucks from RAM and GM that came out last year, full-size truck prices have now eclipsed the $50,000 mark, and new heavy-duty trucks from these manufacturers this year will push those numbers up even more.”
IHS Markit estimates new vehicle sales fell by 1.9 percent to 2.2 percent in the first six months of the year.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
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 […]
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.