Ford, GM to cut sedan production

Market: Metals
31/03/22

US automakers Ford Motor and General Motors (GM) will cut production at two sedan plants next week because of parts shortages.

Ford will cut production at its Flat Rock, Michigan, sedan plant next week as it continues to deal with semiconductor chip shortages.

GM will cut production at its Lansing Grand River sedan plant in Michigan for next week because of a non-semiconductor parts shortage.

North American automakers have dealt with semiconductor and other parts shortages for more than a year as a result of global economic and supply disruptions from the Covid-19 pandemic. Supply issues cut the production of more than 2mn vehicles in North America in 2021, according to data from research firm AutoForecast Solutions.

So far this year regional automakers are expected to lose production of at least 16,000 vehicles, with the production of approximately 300,000 at risk, according to the latest AutoForecast Solutions report.

By Rye Druzin

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26/03/25

Trump to impose new tariffs on auto imports

Washington, 26 March (Argus) — President Donald Trump will announce new tariffs on the automobile industry later today, the White House said, at a time of significant uncertainty about his trade policies. Trump plans to offer further details on the automobile tariffs this afternoon, less than a week before he plans to announce tariffs against major foreign trade partners on 2 April, which Trump has dubbed "Liberation Day". Trump has already imposed a 25pc tariff on steel and aluminum, and earlier this week said he would announce tariffs on imported lumber, semiconductor chips and pharmaceuticals. Trump last month threatened to impose 25pc tariffs on most imports from Canada and Mexico, starting on 4 March — including imported automobiles and vehicle parts — but he eventually offered a one-month reprieve for US automakers before delaying those tariffs entirely until 2 April. The scope and timing of the upcoming automobile tariffs remains unclear, and the White House has yet to provide further details. But Ontario premier Doug Ford previously warned that steep tariffs on Canada could cause auto manufacturing in the US and Canada to grind to a halt within as few as 10 days. Earlier this week, Trump said that South Korean automaker Hyundai's recent decision to invest $5.8bn to build a steel mill in Louisiana offered a blueprint for how companies could avoid tariffs. "This is the beginning of a lot of things happening," Trump said. Even as a lack of details about the upcoming tariffs has fueled uncertainty for businesses and sharp declines on US stock markets, Trump has continued to announce additional tariffs. On Tuesday, Trump said any country taking delivery of Venezuelan oil or gas would be "forced" to pay an incremental 25pc tariff on any goods imported in the US. US oil executives appear to be growing tired of Trump's chaotic trade policy, particularly his imposition of a 25pc tariff on imported steel that is used in drill pipes, executives said in a survey the US Federal Reserve of Dallas released Wednesday. The uncertainty over tariffs and trade policy is causing "chaos", they said in the survey, and increasing their cost of capital. "Tariff policy is impossible for us to predict and doesn't have a clear goal," an unnamed oil executive said in the survey. "We want more stability." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK TRA to broaden scope of steel safeguard review

26/03/25

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26/03/25

UK TRA to broaden scope of steel safeguard review

London, 26 March (Argus) — The UK Trade Remedies Authority (TRA) has widened its review of the steel safeguard in light of concerns raised by steelmakers, it said today. The TRA has broadened the scope of its developing economy status review, which it began on 28 February, after UK Steel said a number of factors warranted a broader review to right-size quotas on certain products. In a submission to the TRA earlier this month, UK Steel said the reimposition of US steel tariffs, the fall in domestic demand and quota liberalisation, and tighter EU safeguards meant the review should be widened. UK Steel said products with "larger residual quotas", hot-dip galvanised (HDG), plate and rebar, are exposed to diverted trade. Last year, more than half of ‘other countries' HDG imports came from Vietnam, 66pc of ‘other countries' plate from South Korea and 78pc of ‘other countries' rebar from Algeria. In its recent steel safeguard review, the EU imposed caps on ‘other countries' HDG, plate and rebar of 20-25pc. It is likely that a similar mechanism could be implemented in the UK to avoid crowding out of traditional flow, but the outright quota volumes are much smaller than in the EU. UK Steel asked for 15pc caps on each product. UK Steel also said the quotas should be reduced in line with softer demand, or at least the rate of liberalisation reduced, in line with the 0.1pc rate in the EU. The reversal of redistributed volumes from Russia and Belarus should also be considered, it said, again in line with EU changes. Carryover of unused quotas from one quarter to the next should also be stopped. The association also said China, India, Turkey, Brazil and Vietnam should not be considered developing countries for the purpose of the safeguards, which would mean they all come into the scope of the ‘other countries' quotas. The TRA said interested parties can now register interest or provide updated submissions until 9 April. Argus reported last month that UK steelmakers had requested greater import protection . By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Korea's LGES inks US energy storage system battery deal

26/03/25

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26/03/25

Korea's LGES inks US energy storage system battery deal

Singapore, 26 March (Argus) — South Korean battery manufacturer LG Energy Solution (LGES) has secured a deal to supply Taiwanese electronics manufacturing firm Delta Electronics a total 4GWh of residential energy storage system (ESS) batteries. The two firms signed a "strategic partnership" and the US-produced batteries will be supplied during 2025-30, said LGES on 26 March. LGES will begin the production of lithium-iron-phosphate (LFP) ESS batteries in the second half of 2025 at its plant in Holland, Michigan, which will be equipped with an ESS production line. They will also under the partnership explore the power grid and commercial ESS markets, said LGES. Delta last year agreed to jointly develop new electric vehicle (EV) charging architecture in the US alongside the US' EV public charging station provider EVGo. LGES last year said it plans to reduce its dependence on the EV battery business and is looking to produce ESS cells in the US from 2025 through its subsidiary, LGES Vertech. The anticipation of higher tariffs on Chinese ESS batteries coming into effect in the US has driven LGES to expect greater growth in market demand for US-produced batteries, the firm said. The firm earlier this week signed another LFP ESS battery deal with Polish state-controlled utility PGE and it intends to also expand ESS battery production in Europe. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US consumer expectations at 12-year low: Survey

25/03/25

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25/03/25

US consumer expectations at 12-year low: Survey

Houston, 25 March (Argus) — The Conference Board's preliminary Consumer Expectations Index fell in March to its lowest in 12 years, to below a threshold that "usually signals" a recession ahead. The Expectations Index, based on the short-term outlook for income, business and labor-market conditions in the US, dropped 9.6 points to 65.2, the lowest level in 12 years and "well below the threshold of 80 that usually signals a recession ahead," according to the survey. The headline Consumer Confidence index fell by 7.2 points to 92.9 in March, marking a fourth month of declines. The Present Situation Index, reflecting consumer assessments of current business and labor-market conditions, fell by 3.6 points to 134.5. The survey cutoff date for preliminary results was 19 March. US consumers' expectations were "especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low," according to the report. Average 12-month inflation expectations rose to 6.2pc in March from 5.8pc in February "... as consumers remained concerned about high prices for key household staples like eggs and the impact of tariffs." "Comments on the current (US) administration and its policies, both positive and negative, dominated consumers' write-in responses," the report said. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Hyundai Steel to build EAF mill in Louisiana

24/03/25

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24/03/25

Hyundai Steel to build EAF mill in Louisiana

Houston, 24 March (Argus) — South Korean automaker Hyundai Motor Group said today it plans to build an electric arc furnace (EAF) flat steel mill near New Orleans, Louisiana, to support its US auto manufacturing plants. The 2.7mn metric tonnes (t)/yr (3mn short tons/yr) mill in Donaldsonville, Louisiana, will primarily supply Hyundai's automotive plants, which are located in Alabama and Georgia, along with plants run by Hyundai-subsidiary Kia and other US automakers, according to the Louisiana Economic Development organization. Construction is expected to begin in the third quarter of 2026. Hyundai detailed the $5.8bn investment on Monday at a news conference with US president Donald Trump. Trump said the mill would allow Hyundai to avoid US steel tariffs. The president has enacted 25pc steel tariffs on imports from all countries, including from South Korea where Hyundai has all of its 24mn metric tonnes (t) of steel output capacity. That production is split evenly between blast furnace and EAF steelmaking processes. Between Hyundai and Kia, the companies have a combined annual production rate of 1.05mn vehicles/yr in the US. Hyundai Steel, a unit of Hyundai Motor, plans to import an estimated 3.6mn t/yr of iron ore to the mill, and will build a deep-water dock on the west bank of the Mississippi River in Ascension Parish to accommodate steel and materials shipments, according to LED. It was not clear whether the iron ore will be reduced in a direct reduced iron (DRI) or hot-briquetted iron (HBI) process to use in the EAF steelmaking. If built, the mill would be the first flat steel mill in Louisiana. The location in Donaldsville is about 48 miles west of New Orleans. Steelmakers operate eight EAF and re-rolling flat-rolled steel mills in the southern US with a combined 23.8mn t/yr of production capacity. By Rye Druzchetta Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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