Insight
US steel exposure to automotive: friend or foe?
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Report summary
In the United States the automotive industry is a major consumer of steel. We estimate that 25-30% or 25-30Mt of steel is used in this sector annually. Almost half of this is linked to the passenger vehicle market, which includes cars, wagons, pick-up trucks and SUVs. The automotive sector is important not only because of its size but also because it has been the only sector that to date has returned to and exceeded pre-crisis consumption volumes...
Table of contents
- Domestic sales drive vehicle production
- Outlook for sales is uncertain
- Vehicle production increasingly shifting south
- Downsizing and lightweighting is another factor to consider
- Long term automotive steel demand to ease in the US
- A race to gain market share in a shrinking market
- Exposure to the automotive sector has its advantages
- Automotive steel seems to be less exposed to import pressures
- The past is not necessarily a good guide for the future
- Oversupply of automotive grade steels will erode price premiums
- Success will be increasingly difficult to come by
Tables and charts
This report includes the following images and tables:
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The current vehicle fleet is in a need of an updateUS steel exposure to automotive: friend or foe?: Image 4Examples of producer and dealer incentives
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AK Steel has the largest exposure to the automotive sectorLarge steelmakers dominate the automotive marketAK Steel's realised prices have been supported by automotivebut the impact on profitability is not immediately evidentHDG price premium compared to CR coil
What's included
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