Steel Markets
US Auto Sales Slip in January
Written by Sandy Williams
February 1, 2017
U.S. auto sales slipped in January as predicted but still had a strong showing at 1.14 million vehicles when compared to the year ago total of 1.16 million. WardsAuto puts the seasonally adjusted annual rate at 17.46 million, the highest January rate since 2006.
Used cars are expected to flood the market this year as leases end, giving consumers a lower priced alternative to new cars, said Mark Wakefield, head of automotive at AlixPartners. According to Wakefield, off-lease volume will rise to 3.36 million cars and trucks this year and new car sales will slip to 17.3 million.
“The biggest factor we see affecting sales is used-car prices,” said Wakefeld in a comment to Bloomberg. “Those cars will need buyers and they will find buyers.”
After two record years, automakers are beginning to trim production with temporary layoffs while trying to move excess inventory.
Edmunds analyst Jessica Caldwell said vehicle sales are expected to decrease 1 to 4 percent in 2017.
“Even though it’s down, it’s sort of to be expected at this point,” said Caldwell as quoted by The Detroit News. “It’s not necessarily bad news, we’re simply running out of people to buy cars.”
Car sales are expected to plateau according to the Center for Automotive Research, which analyst Bernard Swiecki says is not a bad thing after the record sales of 2015 and 2016. Swiecki says the industry is in the mid-phase of the buying cycle and can expect a resurgence of sales in 2020.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
HVAC equipment shipments slow in December but strong annually
Shipments of heating and cooling equipment in the US fell to an 11-month low in December, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
Apparent steel supply rebounds in December, but 2024 total at 4-year low
Apparent US steel supply rebounded in December, but 2024 was still the lowest level for supply since 2020.
Trump officially orders sweeping 25% tariff on steel, aluminum
The new version of Section 232 goes into effect on 12:01 am ET on March 12, according to the executive order. The latest iteration of Section 232 removed quotas, exemptions, and other carve outs that had accumulated over years.
Tampa Steel Conference: Two weeks to go!
With just two weeks to go, we have over 400 registered so far for the 36th annual Tampa Steel Conference. Join us and hundreds of industry executives at the JW Marriott Tampa Water Street from Sunday, February 2, through Tuesday, February 4.
Galvanized buyers see glimmers of optimism amidst the chaos
Reflecting on 2024 and looking ahead to the new year, galvanized steel buyers on this month’s HARDI call expressed a mix of cautious optimism with lingering uncertainties.