Automotive MMI: Semiconductor Shortage, Low Stock Weight on Third Quarter Automotive Sales – Steel, Aluminum, Copper, Stainless Steel, Rare Earths, Metal Prices, Forecasts


The Monthly Automotive Metals Index (MMI) stable for this month’s reading, as US auto sales slumped in the third quarter.

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Decline in US auto sales in the third quarter

General Motors announced that its third-quarter sales fell from 665,192 vehicles in the third quarter of 2020 to 446,997 vehicles in the third quarter of 2021, a decrease of 32.8%.

The automaker cited disruptions in the semiconductor supply chain and “historically low inventory.”

“During the quarter, GM informed investors that its wholesale volumes in North America in the second half of 2021 would be down about 200,000 units from the first half, largely due to disruptions in the supply chain. ‘Supply in Malaysia caused by COVID-19, with most of the impact occurred during the third quarter,’ the automaker said. “GM’s financial outlook is expected to remain within the range of the previously provided calendar year guidance as the company continues to develop solutions to mitigate the impacts of the semiconductor shortage and the Chevrolet Bolt EV recall. “

During this time, Ford Total reported sales in the United States fell 17.7% in September. Unlike its truck and car segments, Ford SUV sales jumped 3.4%.

“Improvements in production and inventories in August paid off in September, as Ford’s retail sales rose 34.3% from the previous month, boosting Ford’s retail share for the month. at about 12.9% – up 3.8 percentage points from August, ”Ford said.

Fiat Chrysler reported sales fell 19% to 410,917 in the third quarter of 2021.

“As the various supply chain issues facing our industry continue to impact inventory on hand, we know the demand for our vehicles is still there,” said Jeff Kommor, Head of State Sales. -United. “Since the start of the calendar year, total sales have improved by 3% compared to the same period last year.

Besides, Honda announced that its sales in the United States fell 10.9% to 345,914 vehicles in the third quarter of 2021. Its September sales fell 24.7% to 95,816 vehicles.

Falling auto sales in China

Meanwhile, Chinese auto sales fell month-over-month for the fifth consecutive month in August, the China Association of Automobile Manufacturers reported last month.

Chinese auto sales totaled 1.80 million vehicles in August, down 3.5% from the previous month. Year over year, sales were down 17.8%.

January-August sales totaled 16.56 million vehicles, up 13.7% year-over-year.

GM and GE Renewable Energy sign Memorandum of Understanding

As we noted this morning, GM this week announced an agreement with GM Renewable Energy whereby the parties will work to develop the supply chain for rare earths and other materials used in electric vehicles and renewable energy.

The parties “will assess opportunities to improve the supply of heavy and light rare earth materials and magnets, copper and electric steel used in the manufacture of electric vehicles and renewable energy equipment,” GM said.

GM said the companies would initially focus on building a vertically integrated magnet manufacturing supply chain based in Europe and North America. In addition, they plan to collaborate on supply chains of other materials, including copper and electronic steel.

Ford announces plans for battery manufacturing campus in Kentucky

In other electrification news, Ford announced late last month plans to build a new battery manufacturing campus in Glendale, Ky.

The facility will produce batteries for the “next generation of Ford and Lincoln electric vehicles”.

Ford plans to invest $ 5.8 billion to build the BlueOvalSK battery bank. In addition, it plans to add 5,000 jobs.

Real metal prices and trends

The price of hot-dip galvanizing in the United States rose 1.4% month over month to $ 2,222 per short ton as of October 1. Meanwhile, the price of shredded scrap in the United States fell 5.1% to $ 467 per short ton.

The LME three-month copper price fell 3.1% to $ 9,165 per metric tonne.

The premium of Korean 5052 aluminum coil over 1050 increased 4.3% to $ 4.08 per kilogram.

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