Steel Markets
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/dad4ec325b1a8633af67505c699be549.jpg)
US Light Vehicle Sales Rebound Slightly in June
Written by David Schollaert
July 15, 2022
US light vehicle (LV) sales rose to 1.13 million units in June, up 1.8% from 1.11 million units in May. But LV sales in the US fell by 12.6% year-on-year (YoY), the US Bureau of Economic Analysis (BEA) reported.
The YoY decline would have been steeper if it weren’t for the fact that sales were already lower than anticipated in June 2021 because of the chip shortage.
A lack of inventory continues to plague the market, yet the annualized selling rate rose slightly to 12.99 million units last month from 12.71 in May. Supply issues continue to disrupt regular seasonality, distorting that metric to some extent.
These dynamics are not limited to the US or to North America. Globally, the LV selling rate rose to 85 million units annually in June. But in year-to-date (YTD) terms, sales are 8.5% below the same year-ago period, signaling that the global market has a long road to recovery.
While supply issues are still impacting demand in most regions, a strong sales recovery in China, supported by the easing of Covid lockdowns, enabled OEMs to ramp up production. Also helping sales in China was a new temporary tax cut for Passenger Vehicles (PVs), which meant last month’s selling rate rose compared to May, according to LMC Automotive.
Below in Figure 1 is the long-term picture of sales of autos and lightweight trucks in the US from 2005 through June 2022, as well as the market share sales breakdown of June’s 12.99 million vehicles at a seasonally adjusted annual rate.
Microchip and parts shortages are still affecting automotive production. Inventories remain tight and are pushing transaction prices higher. The run up in the average transaction price (ATP) continues to coincide with historically low incentives.
New-vehicle ATPs rose to $48,043 in June, rising for the third straight month and hitting a new record high. Prices were up 1.9% (+$895) in June versus the prior month and are 13.7% (+$5,785) above the year-ago period, according to Cox Automotive data.
Incentives dropped to a record low of $930 in June, remaining below the $1,000 mark for the second consecutive month, and roughly 2% of the average transaction price. Incentives are down 62.7%, or $1,562, YoY.
In June, the annualized selling rate of light trucks was 10.279 million units, up 2.4% versus the prior month but down 13% YoY. Auto annualized selling rates were similar during the same periods: up 1.7% and down 25.6%, respectively.
Figure 2 details US auto and light-truck market share since 2010 and the divergence between average transaction prices and incentives in the US market since 2020.
Canada and Mexico saw varying dynamics in June. In Canada, LV sales are estimated to have declined by 11.5% YoY in June, to 149,000 units. The selling rate picked up slightly in June, to just under 1.5 million units annualized. The market, though, is clearly still in a slump due to the lingering inventory shortages.
On the other hand, Mexican auto sales grew by 4% YoY in June, to 90,000 units. The selling rate slowed, however, to 1.11 million units annualized, from 1.18 million units annualized in May.
Editor’s Note: This report is based on data from the US Bureau of Economic Analysis (BEA), LMC Automotive, JD Power, and Cox Automotive for automotive sales in the US, Canada, and Mexico. In specific, the report describes light vehicle sales in the US.
By David Schollaert, David@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_DS_headshot.png-150x150.jpg)
David Schollaert
Read more from David SchollaertLatest in Steel Markets
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/GrafTech.jpg)
GrafTech’s Q2 loss widens in ‘challenging’ business environment
GrafTech cited a “challenging” part of the business cycle as its net loss widened in the second quarter.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Poor steel margins continue to push down raw material prices
Both iron ore and coking coal prices fell this week because of resistance from buyers. Iron ore prices have continued to fall throughout the past week, following sharp declines in steel prices in China, given no new policy announcement from the ‘Third Plenum’ meeting.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/canacero-logo.png)
Op-Ed: The myth of the Mexican steel surge
We have heard ominous warnings about a flood of Mexican steel threatening the US market. It's the kind of rhetoric that gets thrown around often with little regard for the facts. The reality is that the Mexican steel surge is simply not happening, and the US steel industry has consistently maintained a significant trade surplus in finished products with Mexico. In 2023 alone, this surplus exceeded $3 billion.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/graph_up_arrow.png)
Influx of coated products fuels recent import surge
Steel imports fell back in May from April’s recent high but remained elevated compared to the levels seen over the past year. A deeper dive into the data confirms what SMU has been hearing from sources: Coated sheet is driving the recent rise in overall import levels.