Steel Markets
Toyota Cuts February Production Forecast on COVID, Supply-Chain Snarls
Written by Michael Cowden
January 18, 2022
Toyota has reduced its North American production schedules for the second month in a row because of shortages stemming from COVID-19 and supply-chain bottlenecks.
The Japanese automaker said on Tuesday that its North American assembly plants would make approximately 25,000-30,000 fewer vehicles than initially projected in February.
That number could change because “the situation remains fluid,” a company spokeswoman said in an email to SMU.
“Toyota will continue to face shortages that will affect production at our North American plants. Our teams are working diligently to minimize the impact on production,” she said.
“We do not anticipate any impact to employment at this time,” she added.
Toyota scaled back January production by 40,000-50,000 vehicles for similar reasons.
The automaker did not specify how many tons of steel would be impacted by the reduced production levels. A rough rule of thumb is that each passenger vehicles contains approximately one ton of steel.
Automakers have been struggling with COVID, supply-chain issues as well as shortages of chips and other parts for more than a year.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Markets
Construction spending steady in November
Construction spending inched higher in November for a second straight month.
Steady architecture billings signal improving conditions
The November ABI decreased month over month but was still the third-highest reading of the past two years.
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Slowing data center, warehouse planning drives decline in Dodge index
The Dodge Momentum Index (DMI) slid further in November as planning for data centers and warehouses continued to decline.
Latin America’s steel industry grapples with declining demand, rising imports
With climbing imports and falling consumption, the Latin American steel industry has had a challenging 2024, according to an Alacero report.