Steel Markets
U.S. Auto Sales Strong in July, But Down 2% in First Half
Written by Sandy Williams
August 2, 2019
U.S. auto sales appeared to do well in July despite some cooling of the market. Toyota, Honda, Subaru and Hyundai all posted gains for the month. Although Ford, General Motors and FCA no longer report monthly data, analysts suggest that the Big Three also saw sales increase in July.
Cox Automotive said the auto market remained strong last month. “July sales are coming in near where we expected – a slightly slower pace than the YTD average,” said Charlie Chesbrough, Cox senior economist. “Clearly, the market remains on solid ground and buyers are still in the new-car market even with higher prices. Strong sales of some small cars may suggest that affordability shoppers have not entirely abandoned the new-vehicle market. Given the strength of used-vehicle prices, and supply constraints limiting selection, more interest in lower priced new vehicles is not surprising.
“Our full-year forecast for the new-vehicle market in the U.S. remains at 16.8 million,” said Chesbrough. “July’s results will not alter the outlook. And while the Fed’s interest rate cut yesterday will help contain borrowing costs, we do not think the impact on car sales will be much, and not for a while.”
Kelly Blue Book estimates the average transaction price for a new vehicle in July was $37,169, down 0.8 percent from June but up 3.5 percent from a year ago.
“While July is expected to come in below a 17-million SAAR pace, the industry average transaction price continued its steady rise, up 3 percent year-over-year,” said Tim Fleming, analyst for Kelley Blue Book. “Trucks were the big story in July as new mid-size and full-size offerings helped to drive truck prices up about 3 percent while contributing to sales growth in this down market. With the new 1500 trucks from RAM and GM that came out last year, full-size truck prices have now eclipsed the $50,000 mark, and new heavy-duty trucks from these manufacturers this year will push those numbers up even more.”
IHS Markit estimates new vehicle sales fell by 1.9 percent to 2.2 percent in the first six months of the year.
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.