Steel Markets

Fire at Parts Supplier Disrupts Production for Automakers
Written by Sandy Williams
May 10, 2018
A massive five at automotive parts supplier Meridian Magnesium Products has disrupted vehicle production at Ford, General Motors, FCA, BMW and Mercedes-Benz.
An explosion and fire at the Meridian Lightweight Technology’s Eaton Rapids plant in Michigan on May 2 has forced Ford to suspend production of its popular F-150 truck and Superduty pickups. Ford has temporarily idled production at its Kansas City and Dearborn plants, affecting more than 7,000 total workers at the two facilities. Ford Superduty production was halted in Kentucky, but the plant continues to produce other vehicles.
Ford could not provide details on how long production will be suspended, but some sources predict it may be several weeks.
Meridian produces aluminum and magnesium lightweight parts such as engine cradles, front-end carriers, instrument panel crossbar beams, liftgate inner structures and radiator supports. The company operates four plants in North America and said it is working to move its dies to Ontario and the UK.
Daimler’s Mercedes-Benz halted SUV production at its Alabama plant after facing a shortage of a crossbar beam for its SUVs
General Motors is pausing production on two of its full-size vans at its Wentzville assembly plant in Missouri.
FCA’s Windsor assembly plant, which produces the Chrysler Pacifica, is adjusting production schedules due to a shortage of parts from Meridian.
BMW is experiencing disruption to its production lines for the X4 and X6 at its Spartanburg, S.C., plant.
Meridian Magnesium Products of America hopes to rebuild the Michigan complex and reopen within four months.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets

US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.

Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.

Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]

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.