Automakers Honda and Toyota will both temporarily suspend production at some North American facilities because of various supply chain issues, while other manufacturers continue to make adjustments.
Global semiconductor shortages have hampered automobile production since January, forcing several major automakers to curtail production and redirect chips to higher-margin full-size pickups and SUVs.
Honda will suspend production at most of its US and Canadian plants for one week beginning on 22 March because of a slew of supply chain issues, including the lingering impacts from Covid-19, congestion at various ports, the global semiconductor shortage and severe winter weather over the past several weeks.
The automaker declined Argus' request to provide plant-specific information, regarding models impacted or volume of production expected to be lost over the week-long stoppage.
Honda operates 12 manufacturing plants in the US, which produce Honda and Acura vehicles and their engines, transmissions, and components; aircraft and aircraft engines; power equipment; and powersports products.
Toyota has also been hobbled by supply constraints primarily related to a shortage of petrochemicals which will impact production at the automaker's plants in Kentucky, West Virginia and Mexico.
The company said it is evaluating the supply constraints and developing countermeasures to minimize further impacts to production.
Toyota confirmed earlier this month that it was suffering semiconductor shortages for its full-size Tundra pickup truck, which is manufactured in Texas, with components also produced at its facilities in Alabama, Tennessee and Missouri.
Other auto manufacturers throughout the US have also faced production issues over the last month.
GM will shutter production at its Lansing Grand River assembly plant in Lansing, Michigan which builds the Chevrolet, Camaro and CT4 and CT5 Cadillacs from 22 March through at least the end of the month.
In early March, the company extended plant shutdowns at several of its facilities into mid-April because of the lack of semiconductors.
The automaker has not cut any production of its higher-value and steel- and aluminum-intensive full-size trucks or SUVs.
Its San Luis Potosi plant in Mexico that makes the Chevrolet Equinox small SUV, Chevrolet Trax and GMC Terrain small SUVs is expected to resume production beginning the week of 5 April, after the plant was shut down on 8 February.
Automaker Subaru has made some production adjustments at its Indiana plant, which include reductions to overtime work and holiday shifts.
Similarly, Ford had to curtail production of its top-selling F-150 full-size pickup truck in early February.
Meanwhile, BMW, Daimler, Hyundai and Kia said they have not had production affected by the shortages.
So far, the auto production slowdowns have not yet had a meaningful impact on flat-rolled steel consumption as demand has continued to outstrip supply.
US flat-rolled steel prices climbed to historical highs over the last few months despite hampered auto production, with the Argus US hot-rolled coil (HRC) Midwest assessment at $1,286.50/short ton (st) on 17 March and the Argus assessed southern ex-works HRC price at $1,297/st.
Still, auto production curtailments have had a direct impact on steelmakers' raw materials costs, as highly sought after industrial prime grade scrap generated by the automotive sector has significantly contracted over the last month.
Prices of prime scrap grade #1 busheling increased by $70/gross ton in the US domestic March ferrous scrap trade. The continued curtailments and disruptions to US auto production will likely continue to leave #1 busheling undersupplied in the April trade.
