Automotive MMI®: Low Oil is Bringing Sales Back to Pre-2008 Levels

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Vehicle sales in the US have made a steady recovery from the 2008-2009 financial crises and are now back to where they were before the recession. Sales are on track to hit about 16.5 million vehicles by year-end, WallStreetDaily.com reported.

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The confidence in the marketplace is coming via increased sales of the old American favorites, pickup trucks and sport utility vehicles.

For example, Ford Motor reports that such vehicles made up about 72% of its sales in October, up from 68.5% a year ago. And 3 of the top 5 sellers in October were full-size pickups: the Ford F-150, the Chevrolet Silverado, and the Dodge Ram.

China, the world’s biggest vehicle market, has slowed its purchasing, but it’s market is still growing. In the first 10 months of this year, vehicle sales were up 6.6% year on year to nearly 19 million vehicles.

Scotiabank analyst Carlos Gomes told WallStreetDaily he foresees further good times ahead in 2015, thanks to low oil prices.

The week’s biggest mover on the weekly Automotive MMI® was the price of US palladium bar, which saw a 2.3% increase to $812.00 per ounce. This comes on the heels of a 0.8% decline the week prior. The price of US platinum bar rose 1.2% to $1,236 per ounce after falling 0.4% during the previous week.

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US HDG saw a 0.5% decline over the past week to $749.00 per short ton.

With a 0.7% decrease, the Chinese lead price closed the week at CNY 13,450 ($2,178) per metric ton. The 3-month price of copper rose 0.5% on the LME to $6,422 per metric ton after falling 3.0% during the previous week. The cash price of primary copper rose 0.4% on the LME to $6,476 per metric ton after falling 3.0% during the previous week. Prices for Korean 5052 coil premium over 1050 sheet remained constant, closing the week at KRW 3,890 ($3.53) per kilogram.

The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends. For more information on the Automotive MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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