Steel Markets

More Microchip-Related Downtime for Stellantis
Written by David Schollaert
March 13, 2022
The semiconductor shortage that has hamstrung North American automakers for the better part of two years is still causing production headaches. Stellantis is the latest carmaker to report delays due to the lack of microchips.
The Auburn Hills, Mich.-based automaker has extended the downtime at its Belvidere Assembly Plant for a second straight week, a company spokeswoman told Steel Market Update.
“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply-chain issues facing our industry,” she said.
Production had initially paused at the Belvidere, Ill., assembly plant during the week of March 7. The latest downtime at the facility, which makes the Jeep Cherokee SUV, will now extend through the week of March 14.
From mid-2020 onwards as the economy has recovered from the pandemic, there’s been a surge in demand for automotive semiconductors, driven by the introduction of electric vehicles and technologies such as driver assistance systems. In fact, chips account for more than 20% of the input costs for new premium vehicles. Additional chip inventory would be welcomed relief for the auto industry, which has been among the hardest hit by the semiconductor shortfall that is expected to persist into the second half of 2022.
Though no other North American automaker reported any current or planned downtime to SMU this week, General Motors, Ford, Toyota and Honda have all experienced production disruptions this year due to the microchip shortage.
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest 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.