Despite a general rebound in shipments from a low in Q4 2023, year-on-year figures showed a decline. However, improvements were noted in March, and the companies anticipate a slight uptick in Q2 shipments driven by stronger demand from end-users and seasonal buying patterns.
The automotive sector, a significant consumer of steel, has shown recovery, with April sales reporting an annualized rate of 15.7 million light vehicles, slightly up from March but consistent with April last year. Cleveland-Cliffs highlighted its automotive segment's strong performance, particularly noting Toyota as its largest customer.
Yet, there remains caution about the near-term steel demand, especially from the automotive sector where recent increases were primarily in smaller, more affordable vehicle segments.
Steel mills are preparing for lower average selling prices, reflecting cautious optimism amidst economic uncertainties.
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