Auto sales increase in the second quarter of June despite supply constraints
the Monthly Automotive Metals Index (MMI) slipped 0.7% for this month’s index reading, as US auto sales surged in June and the second quarter.
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Auto sales in the United States
Among the best car manufacturers, General Motors announced its sales in Q2 the US market jumped 40% year over year.
GM reported sales of 688,236 vehicles during the quarter.
The automaker touted continued strong demand, but also noted the continued pressure on supply resulting from the global semiconductor shortage.
“The US economy is accelerating, consumer spending is strong and jobs are plentiful,” said Elaine Buckberg, GM’s chief economist. “Consumer demand for vehicles is also strong, but constrained by very tight stocks. We expect continued high demand in the second half of this year and into 2022. ”
Meanwhile, Ford Motor Co. reported retail sales fell 32.5% in June. Retail sales of trucks fell 34.4%, while sales of SUVs fell 17.8%.
Ford’s electric vehicle sales rose 117% in June. Additionally, illustrating strong demand and limited supply, Ford said average transaction prices rose $ 6,400 from a year ago to $ 47,800.
FCA United States sales published in Q2 jumped 27% year over year.
“The recovery of the US economy and continued strong demand for our products have generated unprecedented results,” said Jeff Kommor, US Sales Manager. “We continue to work closely with our suppliers to mitigate manufacturing impacts caused by the various supply chain issues facing our industry. “
Honda, Meanwhile, reported a 65.7% increase year after year in its second quarter sales. The automaker also posted a 33.4% year-over-year jump in June.
“Based on strong product inventories, Honda achieved the best four-month sales streak in history, including a new second quarter sales record,” Honda said in its sales report. “Fueled primarily by record truck sales, cars also contributed, with Civic and Accord having completed a strong 2nd quarter, accumulating more than 53,000 sales in June. “
Nissan reported a 68.1% year-over-year jump to 298,148 vehicles for its sales in Q2. In addition, Nissan sales in the United States have jumped 34.2% year-to-date.
Increased retail sales of new vehicles
According to a forecast from JD Power and LMC Automotive, retail sales of new vehicles are expected to increase by 12.4% year after year in June.
At the same time, they predicted that retail sales of new vehicles would rise 0.3% from June 2019 sales.
“June is expected to cap off a meteoric first half of 2021 with several performance records since the start of the year,” said Thomas King, president of the data and analytics division at JD Power. “By volume, retail sales since the start of 2021 tend to exceed just over 7.1 million units, the best first half on record. Records will also be set for the average transaction price, total consumer spending on new vehicles and retailer profitability. “
Auto sales in China fall in May for the first time in 14 months
Meanwhile, according to the latest available data from the China Association of Automobile Manufacturers, Chinese auto sales decreased by 3.1% year after year in May.
In addition, sales fell 5.5% compared to the previous month.
GM begins lithium supply collaboration
Meanwhile, earlier this month, General Motors announced it would source “US-based lithium” through a collaboration with Controlled thermal resources. Through the collaboration, the automaker said it aims to secure “local and low-cost lithium.”
“This lithium will be produced through a direct closed-loop mining process which will result in a smaller physical footprint, no production residues and lower carbon dioxide emissions compared to traditional processes like pit mining. open or evaporation ponds, ”GM said.
Lithium is an essential component of electric vehicle batteries. As the auto industry continues its gradual electrification process, the demand for lithium will continue to grow.
According to the United States Geological Survey of January 2021 summary of lithium products, the only production of lithium in the United States comes from a brine operation in Nevada. Over 70% of the world’s lithium is used in battery production.
From 2016 to 2019, 55% of US lithium imports came from Argentina, followed by Chile (36%), China (5%) and Russia (2%).
“A significant amount of future GM battery-grade lithium hydroxides and carbonates could come from CTR’s Hell’s Kitchen Lithium and Power development at the Salton Sea geothermal field, located in Imperial, Calif.,” Added GM. “With the help of GM’s investment, CTR’s closed-loop direct mining process will recover lithium from geothermal brine. “
Real metal prices and trends
The price of HDG in the United States rose 6.5% month over month to $ 2,006 per short ton on July 1. Meanwhile, US shredded steel scrap jumped 11.8% to $ 503 a short ton.
Korea’s premium for 5052 aluminum coils rose 1.0% to $ 3.95 per kilogram.
Finally, the LME’s three-month copper fell 7.5% to $ 9,406 per metric tonne.
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