November 18, 2021 – The latest figures from the US Federal Reserve (FED) show that vehicle production in the United States rose by almost 19% in October 2021. Vehicle sales are also up 6% from the previous month. This points to an imminent end in the chip shortage and a surge in demand for steel and aluminium. China is producing more than 23% less crude steel. And EU plate prices are expected to rise further.
US-FED: Strong increase in vehicle production
The US Federal Reserve (FED) has reported a strong increase in production in the US automobile industry for October 2021. A total of more than 9.1 million vehicles were produced, representing an 18.8% increase in vehicle production compared to September 2021. In addition, vehicle sales increased 6% in October from the previous month.
Semi conductor shortage over?
This suggests that the shortage of semiconductors – at least in the automotive industry – may be coming to an end and that other major carmaking countries, such as Germany, are also likely to see an increase in vehicle production.
Demand for steel and aluminium will pick up
This will significantly fuel demand for steel and aluminium in the coming months, as carmakers have a large backlog to work off. In addition, car purchases are picking up.
China produces much less crude steel
The Chinese government’s measures to curb pollution from old steel mills and to combat energy shortages seem to be having an effect. According to statistical data, crude steel production in October 2021 fell by 23.3% year-on-year.
EU plate prices pick up
EU plate prices rose again this week. EU producers had already increased prices by up to $120 per tonne at the beginning of the month. Currently, further price increases seem to be planned by the producers due to higher costs for slabs.
Read also:
- EC to ban export of steel and aluminium scrap to non-OECD countries
- Stainless Espresso: China’s alumina net imports at 2.59 million tonnes
- Stainless Espresso: Indian steel demand to pick up significantly
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
