Steel Markets
Auto Sales Still Robust in January
Written by Sandy Williams
February 3, 2020
Automotive sales were up year-over-year for most automakers that reported data for January. Sales last month rose 1.0 percent to a seasonally adjusted annual rate of 17.1 million vehicles, according to auto research firm Edmunds.
Automotive sales declined 1.6 percent in 2019 to 17.1 million vehicles. Edmunds expects sales for 2020 to be flat, but Cox Automotive and LMC Automotive are less optimistic. Analysts at those two companies are predicting sales closer to 16.7 million for this year, breaking the five-year run of 17 million or more.
“This year is starting with less trade uncertainty in the auto sector than in 2019 and, while economic growth is expected to hover just under 2 percent, there could be some upside with trade being less of a drag and it being an election year,” commented Jeff Schuster, president, Americas Operations and Global Vehicle Forecasts, LMC Automotive. “Affordability remains a major concern for the U.S. auto market as transaction prices have continued to rise and used vehicles are a viable substitute for some consumers, especially entry-level buyers.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Drilling activity slows in US but picks up steam in Canada
Oil and gas drilling in the US slowed for a third consecutive week, while activity in Canada hovered just shy of the 19-week high reached two weeks prior.
SMU Survey: Buyers remain leery of tariffs, but more see reshoring happening
This week’s SMU survey reveals that a growing number of steel market participants are weary of tariffs and are awaiting evidence of progress reshoring. At the start of 2025, now-second-term President, Donald Trump, pronounced that his plan to implement tariffs would result in increased revenue for the US.
Hot-rolled coil market remains slow, market participants say
Hot rolled spot market participants reported another week of moderate demand and ample supply, with no strong signs that conditions will change next week.
Plate prices slip even as mills officially keep tags unchanged
US plate market participants are not fazed by the constricted nature of the current spot market pricing environment. Right now, they said, mill’s choosing to hold prices from one month to the next makes sense because service centers remain amply supplied and demand is stable. Modest upticks or slips in prices are aligned with most of the participants' expectations right now.
Still no cure for the summertime HR market blues
Seasonal steel slowdowns combined with ongoing anxieties about tariffs and mill strategies have dampened sentiment for several hot-rolled steel market participants this week. Buyers are jittery, market stands still The operator of a Midwest-based service center said that steel buyers are scared. “Everyone is afraid to buy steel right now. Unless you’re on a […]