This morning in metals news: the U.S. goods and services deficit rose by $2.2 billion in May; meanwhile, new orders for manufactured goods rose in May; and, lastly, Ford Motor Co. released its June sales results.
We’re offering timely emails with exclusive analyst commentary and some best practice advice. Sign up here.
US goods and services deficit increases in May
freshidea/Adobe Stock
The U.S. goods and services deficit rose by $2.2 billion in May to $71.2 billion, the Census Bureau reported.
The deficit increased from $69.1 billion the previous month.
Furthermore, May exports reached $206.0 billion, or up $1.3 billion from the previous month. Meanwhile, May imports reached $277.3 billion, or up $3.5 billion.
This morning in metals news: new-vehicle retail sales are on pace to hit their highest total ever for the month of May, according to J.D. Power and LMC Automotive; meanwhile, new orders for manufactured durable goods declined in April after 11 straight months of gains; and, lastly, LME aluminum has backtracked over the last two-plus weeks.
The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.
New-vehicle retail sales set to have record May
Photographee.eu/Adobe Stock
US new-vehicle retail sales are on pace to have a record May, J.D. Power and LMC Automotive reported in their jointly released automotive forecast today.
They project new-vehicle retail sales this month will reach 1,388,600, good for an increase of 34.0% year over year. Furthermore, the sales forecast would mark a jump of 10.6% compared with May 2019 sales.
“The U.S. auto industry is showing tremendous adaptability in maintaining a record sales pace, despite historically low inventory levels,” said Thomas King, president of the data and analytics division at J.D. Power. “May is usually one of the highest-volume sales months with buying activity peaking around the Memorial Day weekend when manufacturers typically offer incremental incentives. This year, notwithstanding supply constraints and significantly reduced incentives from manufacturers, May 2021 will be another record-breaking month for the industry.”
According to a joint forecast released by J.D. Power and LMC Automotive, US new-vehicle retail sales in April 2021 are headed for the highest number ever recorded for that month.
The news will be some consolation to automakers, who have struggled with a semiconductor shortage. As a result of the shortage, General Motors, Ford, Stellantis, Honda and many others have had to idle production.
We know what you should be paying for metals — MetalMiner should-cost models are the ultimate savings hack by showing you the “should-cost” price for gauge, width, polish and finish adders. Explore what value they can add for your organization.
New-vehicle retail sales set to hit record April
Despite the slowdown in output, US automotive sales surged in April.
According to a forecast released today by J.D. Power and LMC Automotive, new-vehicle retail sales in April are set to reach 1,325,500 units. Trucks and SUVs are expected to account for 76.1% of those sales.
That sales figure would mark a whopping 110.6% increase from April 2020 sales (when adjusted for selling days).
Meanwhile, the April sales forecast marked a 20.8% increase compared with April 2019 sales.
In addition, the automotive intelligence firms projected 1,479,800 units in total new sales. That would mark an increase of 107.1% from April 2020. When compared with April 2019, it is a 7.8% jump when adjusted for selling days.
The groups forecast the seasonally adjusted annualized rate (SAAR) for total new-vehicle sales to reach 18.1 million units. That would mark an increase of 9.4 million units from 2020 and 1.7 million units from 2019.
This morning in metals news: miner Rio Tinto announced it had reached a financing plan with Turquoise Hill Resources for the Oyu Tolgoi copper mine in Mongolia; meanwhile, the United States International Trade Commission (USITC) made a countervailing duty ruling on chassis and subassemblies from China; and, lastly, China’s National Bureau of Statistics released Producer Price Index (PPI) figures for the industrial sector in March.
The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.
Rio Tinto reaches financing deal for Oyu Tolgoi
Miner Rio Tinto announced it had reached a financing deal with Turquoise Hill Resources for the Oyu Tolgoi copper miner project.
The massive underground copper-gold mine project is a partnership between the Mongolian government and Turquoise Hill Resources. Rio Tinto has a majority stake in Turquoise Hill. Meanwhile, the Mongolian government owns 34% of the project, while Turquoise Hill owns the balance.
This morning in metals news: US energy consumption fell by 7% in 2020; the United Steelworkers union commented on the details of President Joe Biden’s American Jobs Plan; and the aluminum price retraced last week.
Want an occasional email from MetalMiner that highlights new content with NO sales ploys? Join that list here.
US energy consumption down 7% in 2020
Amid the impact of the COVID-19 pandemic, US energy consumption fell by 7% in 2020, the Energy Information Administration (EIA) reported.
“Last year marked the largest annual decrease in U.S. energy consumption in both percentage and absolute terms in our consumption data series that dates back to 1949,” the EIA said. “Much of the 2020 decrease in energy use is attributable to economic responses to the COVID-19 pandemic that began in the United States during the spring of 2020.”
USW on American Jobs Plan
As we noted last week, the United Steelworkers union last week announced a strike at nine Allegheny Technologies Inc. facilities. The move could have significant ramifications for stainless steel buyers, should it linger.
President Joe Biden released details of the so-called American Jobs Plan, which among its stated goals aims to modernize infrastructure, revitalize manufacturing and create what it says will be “millions” of jobs.
The proposal will include an investment of approximately $2 trillion over the next 15 years, the White House said Wednesday.
The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.
Aluminum in infrastructure
On the heels of the announcement, domestic metals associations weighed in on the Biden administration’s wide-ranging proposal.
The Aluminum Association applauded the news in general terms, emphasizing aluminum’s role in infrastructure development.
“We are pleased to see the Biden administration and the Congress focusing on infrastructure investment as the national priority that it is,” Aluminum Association President and CEO Tom Dobbins said. “Aluminum is an essential element to America’s infrastructure future – used widely in the electric grid, solar panels, electric vehicle charging stations and buildings of all kinds. Major investment will also provide a once-in-a-generation opportunity to modernize the nation’s recycling infrastructure, vital to shoring up domestic aluminum supply chains and increasing manufacturing self-sufficiency.”
Dobbins added the Aluminum Association “stands ready to work with” the Biden administration and Congress on “investments that work for America’s vital aluminum manufacturing base.”
AISI supportive, but disagrees with funding
Meanwhile, in its own statement, the American Iron and Steel Institute (AISI) also praised the administration’s focus on infrastructure.
However, the industry group expressed its disagreement with the funding mechanisms in the proposal.
This morning in metals news: President Joe Biden unveiled details of the $2 trillion investment toward the American Jobs Plan; meanwhile, J.D. Power and LMC Automotive recently released their automotive sales forecast for March; and, lastly, Ford yesterday announced its first-ever integrated sustainability and financial report.
The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.
Biden reveals details of American Jobs Plan
This week, President Joe Biden unveiled details of his American Jobs Plan, which will include an investment of $2 trillion.
Furthermore, the plan seeks to revitalize the manufacturing sector, improve US infrastructure, and modernize water delivery systems and electrical grids, among other goals.
“The American Jobs Plan is an investment in America that will create millions of good jobs, rebuild our country’s infrastructure, and position the United States to out-compete China,” the White House said. “Public domestic investment as a share of the economy has fallen by more than 40 percent since the 1960s. The American Jobs Plan will invest in America in a way we have not invested since we built the interstate highways and won the Space Race.”
We have covered the various supply chain and shipping issues that have hampered operations over the last year. Part of the Biden plan calls for improvement of US ports, waterways and airports, including $25 billion for airports.
J.D. Power, LMC Automotive release March sales forecast
Automotive intelligence firms J.D. Power and LMC Automotive recently forecast US automotive retail sales in March would finish up 70.7% compared with March 2020. Furthermore, sales would be up 9.2% compared with March 2019.
In addition, the firms forecast new-vehicle retail sales in Q1 2021 would reach 3.16 million units. That figure would mark an increase of 20.5% from Q1 2020 and 4.7% from Q1 2019.
Ford releases first integrated financial, sustainability report
As electrification continues, many automakers are touting steps taken along the way.
This week, Ford Motor Co. announced the release of its first-ever integrated financial and sustainability report.
Furthermore, the automaker also announced new “science-based targets” toward its goal of carbon neutrality by 2050.
“The targets – to reduce Scope 1 and 2 greenhouse gas emissions from operations 76% from 2017, and Scope 3 GHGs from use of the company’s products 50% from 2019, both by 2035 – were recently approved by the Science Based Targets initiative,” Ford said in a release.
We’re offering timely emails with exclusive analyst commentary and some best practice advice. Sign up here.
Before we head into the weekend, let’s take a look back at the week that was and the metals storylines here on MetalMiner, including coverage of the semiconductor shortage, the Midwest Premium and more.
A fire at a Japanese chip-making plant last week has slammed automotive operations. General Motors, Ford and many other automakers have announced idling of production as a result of the shortage.
Meanwhile, on the supply side, Intel announced plans to invest $20 billion to build two new Arizona plants. Furthermore, Intel said it aims to “serve the incredible global demand for semiconductor manufacturing.”
The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.
Week of March 22-26 (semiconductor shortage, Midwest Premium and more)
Maxim_Kazmin/Adobe Stock
Hot rolled coil prices in Western Europe have continued to rise, Christopher Rivituso explained earlier this week.
In a webinar earlier this week, MetalMiner experts overviewed market conditions and buying strategies for what is currently a bullish commodities market.
U.S. Steel recently unveiled what it called a new sustainable steel product line dubbed verdeX™.
According to the Economic Policy Institute, the former Trump administration’s Section 232 tariffs on steel and aluminum produced “near-immediate benefits.”
Lastly, circling back to the semiconductor shortage, Ford said it will temporarily idle production of the F-150 at its Dearborn, Michigan plant.
Before we head into the weekend, let’s take a look back at the week that was and the metals storylines here on MetalMiner, including the Biden administration reimposing a tariff on aluminum from the UAE, copper demand and much more.
The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.
Week of Feb. 8-12 (Biden administration reinstates UAE aluminum tariff, copper demand and more)
The Biden administration reimposed the Section 232 tariff on aluminum imported from the UAE. Former President Donald Trump had rescinded the tariff on his last day in office.
This morning in metals news: the February 2021 MetalMiner Monthly Metal Outlook (MMO) report is out; the US steel sector’s capacity utilization rate reached 76.1%; and US industrial production rose in December.
February 2021 Monthly Metal Outlook report available
The February 20201 MetalMiner Monthly Metal Outlook (MMO) is now available. Readers will find news, analysis and much more covering copper, aluminum, nickel/stainless, tin, lead, zinc, HRC, CRC, HDG and plate.
The February report recaps price trends and relevant metals sector developments at the start of the new year. Furthermore, subscribers have access to industrial buying strategies and support and resistance levels for each of the aforementioned metals.
However, the report is only available to subscribers. Don’t miss out on the MMO report’s invaluable insights — visit the MMO landing page for more information.
US steel production capacity utilization hits 76.1%
The US steel sector reached a capacity utilization rate of 76.1% during the week ending Jan. 30, the American Iron and Steel Institute (AISI) reported.
This morning in metals news: the February 2021 MetalMiner Monthly Metal Outlook (MMO) report is out; the US steel sector’s capacity utilization rate reached 76.1%; and US industrial production rose in December.