Market Update | December 6, 2023

 

U.S. LIGHT VEHICLE SALES REBOUNDED SLIGHTLY IN NOVEMBER

November light vehicle sales totaled 1.219 million units, up 1.5% from October and up 7.3% from 1.135 million units in November 2022. Sales have now increased, on a year-over-year basis, for sixteen consecutive months. The jump in November sales came from light trucks, which more than overcame the decline in car sales.

 

Input Costs

After holding steady last week, zinc pricing fell this week.

  • Zinc pricing held at $1.11/lb this week and has remained in a relatively tight range for the past month.
    • The average over the past 30 days is $1.148/lb.

 

Iron ore pricing held steady again this week on the anticipation of a new round of stimulus announcements from China.

  • Spot iron ore pricing came in at $136/mt, holding right around the YTD high.

 

Met coal pricing increased this week, climbing to $330/mt on increased buying interest from India coupled with steady Australian supply.

  • This is up 1.9% from last week but is down 5.4% from this time last month.

 
 

Supply

U.S. raw steel production rebounded last week, climbing to a five-month high.

  • U.S. steelmakers produced 1.702 million tons at a 74.1% utilization rate.
  • The current YTD utilization rate is at 75.5%, down 0.3% compared to the same time last year.

 

 

DEMAND

After declining in October, total U.S. light vehicle sales rebounded slightly in November.

  • November light vehicle sales totaled 1.219 million units, up 1.5% from October and up 7.3% from 1.135 million units in November 2022.
    • Sales have now increased, on a year-over-year basis, for sixteen consecutive months.
  • The jump in November sales came from light trucks, which more than overcame the decline in car sales.
    • Light truck sales increased 1.6%, while car sales were down 3.2%.
    • Car sales have now declined in three of the last four months.
  • Year-to-date light vehicle sales are now 12.3% above the same rate from last year.

 

U.S. light vehicle inventory continued to climb in November, now up for the fourth straight month and for the sixth time in the last seven months.

  • Light​ vehicle inventory totaled 2.332 million units, up 8.3% from October and up a sharp 42.0% from 1.643 million units in November 2022.
    • The inventory of both cars and light trucks increased in November, climbing 12.6% and 7.1%, respectively.
  • The current inventory, when combined with November’s sales rate, equates to 48 days of supply.
    • This is the highest level since January 2021, but remains below the historically normal level of 65 days.

 

 

This material, information and analyses (the “Content”) may include certain statements, estimates and projections prepared with respect to, among other things, historical data and anticipated performance.  Content may reflect various assumptions by Majestic Steel USA, Inc. concerning anticipated results that are inherently subject to significant economic, competitive and other uncertainties and contingencies and have been included for illustrative purposes.  Content is provided AS-IS.