Market Update | May 7, 2025

U.S. AUTO AND LIGHT TRUCK ASSEMBLIES HOLD STEADY

U.S. auto and light truck assemblies were virtually flat for the third consecutive month in April.
April assemblies came in at a 10.16 million unit rate, down 0.5% from the 10.22 million unit rate in March. Assemblies continued to slide on a year-over-year basis as well, sliding 3.8% from the 10.57 million unit rate in April 2024. Assemblies have now declined, on a year-over-year basis for six consecutive months. For the first four months of the year, total assemblies came in at a 9.88 million unit monthly average, below the 10.56 million unit average through the first four months of 2024. Uncertainty around consumer spending and impacts from tariffs could negatively impact assemblies heading into the traditionally slower season.

 

PRICE

Domestic flat rolled pricing declined across the board this week as spot activity remains limited in a market with ongoing buyer hesitation.

  • The sharp (8% – 10%) over the last four weeks will be the sharpest decline of this cycle.
  • The current pricing indexes are closer to market and any further downward movement should be smaller week-to-week declines.

 

Input Costs

Zinc pricing was virtually flat this week as the global demand outlook improved slightly on thought of easing trade tensions.

  • Pricing held at $1.23/lb this week, slightly above the thirty-day average of $1.19/lb.

 

Spot iron ore pricing held steady as well this week but remains in the very tight range we have seen for the past six weeks.

  • The current price held at $102/mt for the second consecutive week.

 

SUPPLY

U.S. raw steel production declined last week after climbing 5.1% since early April and reaching an eight-month high two weeks ago.

  • U.S. steelmakers produced 1.720 million tons at a 76.6% utilization rate: down from 1.740 million tons previously.
  • Production is down 1.1% from last week and was down 0.5% from the same week last year.
  • Despite the recent increase, YTD production is still down 0.8% from the same timeframe last year.

 

DEMAND

U.S. auto and light truck assemblies were virtually flat for the third consecutive month in April.

  • April assemblies came in at a 10.16 million unit rate, down 0.5% from the 10.22 million unit rate in March.
    • Assemblies continued to slide on a year-over-year basis as well, sliding 3.8% from the 10.57 million unit rate in April 2024.
  • Assemblies have now declined, on a year-over-year basis for six consecutive months.
  • ​For the first four months of the year, total assemblies came in at a 9.88 million unit monthly average, below the 10.56 million unit average through the first four months of 2024.
  • Uncertainty around consumer spending and impacts from tariffs could negatively impact assemblies heading into the traditionally slower season.

 

 

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.