High Vehicle Costs Dampen Steel Market Momentum | OilPrice.com

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The fluctuations in the price of hot-dipped galvanized steel underscore the interconnectedness of the automotive and steel industries, with trends in car sales directly impacting the steel market.

broke its sideways trend this past month, inching down 3.36%. Though all components of the index fell, hot-dipped galvanized steel experienced a particularly noticeable price drop, as did several other steel types.This could indicate a trend reversal. However, consumer purchasing must rise in order for a reversal to happen, which elevated new car prices are currently preventing.

Overall, U.S. car sales experienced up-and-down performance throughout May compared to April. While auto sales were up from May 2022, the market still faces bearish pressure due to high-interest rates and high new vehicle costs.The car industry in the United States continues to experience pent-up demand for new automobiles. This proved a driving reason behind the temporary increases in auto sales .

This is excellent news for steel firms that are investing in new mills and auxiliary services to meet demand, particularly in light of rising EV demand. In 2022, the worldwide hot-dip galvanized steel market was worth USD 87,228.43 million. Currently, experts predict the sector will grow at a However, hot-dipped galvanized prices have been trading flat over the last month, sitting just below support zones at about $1,200 per short ton.

 

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