Steel Markets
Chip Shortage Continues to Impact U.S. Auto Output
Written by Michael Cowden
March 11, 2021
The semiconductor shortage that forced General Motors to extend assembly plant outages continues to impact production at other North American automakers as well.
Case in point: Toyota’s Tundra pickup truck assembly plant in San Antonio, Texas, where it’s not clear how long the production disruption might last.
The chip shortage been an issue for Toyota since the week of Dec. 20. While the problem is no longer new, securing chips remains “a very fluid process,” and the Japanese automaker has limited visibility on how long the issue might last, a company spokesman said.
“Tundra production continues to be curtailed, and we expect this trend for several weeks to come,” he said.
Other outages have been shorter and more localized. Take Mercedes-Benz, which makes the GLS and GLE SUVs as well as the GLE Coupe in Tuscaloosa, Ala.
Because of the “ongoing supply bottleneck” resulting from the chip shortage, the Tuscaloosa plant suspended one day of production last Friday, a company spokeswoman said.
The plant is running again and trying to catch up from the temporary production reductions where possible, she said.
Despite the chip issue slowing automotive production, and spilling into the appliance industry as well, steel prices continue to march higher and to test new all-time highs.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Markets
AISI: Raw steel production rises for second consecutive week
Domestic raw steel production ticked up again last week, now up to a three-week high according to the latest data released by the American Iron and Steel Institute (AISI).
Wolfe Research’s Tanners cautions on sheet storm’s darkening clouds
Wolfe Research Managing Director Timna Tanners cautioned clients about the darkening clouds of a brewing steel sheet storm in the company's Basic Materials Weekly Webcast on Monday. “This one we’ve been talking about for a while, and we feel like the theme is coalescing here,” she said.
Dodge Momentum Index rebounds on surge of data center planning
A surge in data center project planning pushed the Dodge Momentum Index (DMI), a leading indicator for the nonresidential construction sector, higher in April.
US construction spending levels off in March
Construction spending in the US in March was basically steady from the previous month but showed notable year-on-year (y/y) growth.
CRU: Brazil proposes quotas on steel imports, with tariff back up
Brazil’s chamber of foreign trade, Camex, has approved quotas on imports of 11 steel products and a 25% levy on shipments 30% above a product’s average import volume between 2020 and 2022.