General Motors (GM) has extended plant shutdowns into mid-April due to a lack of semiconductors as the supply issue deepens for the North American auto industry.
The automaker, which previously shuttered production at three plants in early-February through mid-March, is extending those and adding additional production shutdowns.
GM has not cut any production of its higher-value and steel- and aluminum-intensive full-size trucks or SUVs.
The San Luis Potosi plant in Mexico that makes the Chevrolet Equinox small SUV, Chevrolet Trax and GMC Terrain small SUVs will see its closure extended through the end of March.
Closures at the Fairfax sedan plant in Kansas City, which produces the Malibu and XT4 sedans, and the CAMI facility in Ontario, Canada, which produces the Equinox, will be extended from mid-March to mid-April.
GM's Gravatai Assembly Plant in Brazil, which produces the Chevrolet Onix, will shut down in April and May.
Toyota confirmed that it is still suffering semiconductor shortages for its full-size Tundra pickup truck.
Other auto manufacturers have also faced production issues in the last month. Ford had to curtail production of its top-selling F-150 full-size pickup truck.
The auto production slowdowns could potentially cut into demand for flat-rolled steel at a time when demand has outstripped supply and led to surging prices.
US steel prices have more than doubled in the last six months, with the Argus US hot-rolled coil (HRC) assessment at $1,250/short ton (st) on 2 March, compared to a yearly low in 2020 of $450/st on 11 August.
Automotive production cuts have also rippled through the ferrous scrap market, which is partly served by automotive scrap. Prices of prime scrap are expected to increase by as much as $80/gross ton (gt) during the March trade, likely pushing prices into the mid-$500s/gt delivered mill, more than double than in August 2020, as less auto production tightens generation of grades like #1 busheling.
