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
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.
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.