Market Update | February 7, 2024

 

U.S. LIGHT VEHICLE INVENTORY INCREASED IN JANUARY

January light vehicle inventory increased to 2.400 million units, up 4.0% from December and up 40.4% from 1.709 million units in January 2023. This is the seventeenth consecutive month in which inventory has seen a year-over-year increase of at least 38%. Inventory of both cars and light trucks both increased from December, climbing 5.8% and 2.3%, respectively.

 

 

Input Costs

As the recent up and down movement for zinc continues, pricing dropped this week.

  • Zinc pricing came in at $1.09/lb this week, down from $1.16/lb previously and is at its lowest level since mid-December.

 

Spot iron ore pricing declined this week as well, sliding to $127/mt.

  • Current spot iron ore pricing is now at its lowest level since early November.
  • Spot iron ore pricing is down 2.4% from last week and is down nearly 10% since last month.

 

Pacific Basin met coal pricing slipped further this week, sliding to $312/mt.

  • Current pricing is down 3.4% from the end of last week down 7.2% from this time last month.

 
 

SUPPLY

U.S. raw steel production rebounded sharply this week after sliding for the three weeks prior.

    • U.S. steelmakers produced 1.702 million tons at a 76.6% utilization rate.
    • Despite the rebound this week, YTD production is still down 0.6% compared to the same timeframe last year.

 

Average domestic coated sheet lead times continued to narrow this week, sliding to 7.38 weeks.

    • This is down from 7.40 weeks previously and is at its tightest level since mid-August.

 
 

DEMAND

U.S. light vehicle inventory increased in January after slight decline in December.

    • January light vehicle inventory increased to 2.400 million units, up 4.0% from December and up 40.4% from 1.709 million units in January 2023.
      • This is the seventeenth consecutive month in which inventory has seen a year-over-year increase of at least 38%.
    • Inventory of both cars and light trucks both increased from December, climbing 5.8% and 2.3%, respectively.
    • The current inventory, at January’s sales pace, equated to 56 days of supply, up from 41 days in December.
      • This is the highest days of supply since January 2021, but is still below the long-run average 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.