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Here’s a quick look at news and thoughts from some commodity markets, including auto sales, the shipping market, and the Biden administration’s supply chain review.

MetalMiner, one of our sister sites, is scouring the landscape for what matters. This week:

ArcelorMittal targets Liberty Steel assets in France

In the news of mergers and acquisitions, Christopher Rivituso of MetalMiner looked at the interest of the steel giant ArcelorMittal to acquire the assets of Liberty Steel in France.

According to its report, ArcelorMittal is interested in the Liberty factories in Ascoval and Hayange.

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“Rothschild & Cie (Paris) is handling the sale of the assets on behalf of Liberty, a spokesperson for the steel group told MetalMiner in an email, “he wrote.

“A reduction in support for working capital since the collapse of Green capital prompted Liberty Hayange and Ascoval to sell, the spokesperson noted. “

Auto manufacturers’ sales momentum continues in May

May turned out to be another strong month for auto sales in the United States.

JD Power and LMC Automotive forecast May new vehicle retail sales to increase 34% from May 2020. Additionally, they forecast a 10.6% increase from May 2019 sales.

“The US auto industry has demonstrated a tremendous ability to adapt in maintaining a record sales pace despite historically low inventory levels,” said Thomas King, president of the data and analytics division of JD Power. “May is typically one of the busiest selling months, with buying activity peaking around Memorial Day weekend when manufacturers typically offer additional incentives. “

Ford Motor Co. said May total sales rose 4.0%, while retail sales fell 11.2%. Despite relatively low volume, Ford reported a 184% increase in sales of electric vehicles, to 10,364 vehicles.

Aluminum prices retrace

As MetalMiner’s Maria Rosa Gobitz explained this week, aluminum prices hit a nine-year high last month before cooling off in the second half of the month.

“LME aluminum prices hit a nine-year high on May 10 when they hit $ 2,565 / mt,” Gobitz wrote.

“Since then, prices have fallen below $ 2,500 / mt, hitting an average of $ 2,434 / mt throughout May.

“Chinese prices behaved similarly to the LME. They peaked at CNY 20,030 / mt on May 10 but have since fallen.”

Biden administration releases supply chain review

Earlier this year, President Joe Biden called on agency heads to launch 100-day supply chain reviews.

The review was to focus on several key products, including critical minerals, semiconductors, pharmaceuticals and high capacity batteries.

“The COVID-19 pandemic and the resulting economic dislocation have exposed long-standing vulnerabilities in our supply chains,” the report’s introduction said. “The drastic impacts of the pandemic on demand patterns for a range of medical products, including essential drugs, have taken their toll on the US healthcare system. As the world turned to work and home learning, it created a global shortage of semiconductor chips affecting automotive, industrial, and communications products, among others. “

The 250-page report is available online.

Shipping issues

Burns also highlighted the challenges facing the global shipping market.

“At the start of this year, many observers, including us, expected the market to improve,” Burns wrote. “Indeed, freight rates – a barometer of demand – had started to decline early last month. It made some believe the worst was over.

“Meanwhile, India has gone through a well-documented second wave of Covid infections and now China is facing disruption from infections. India appears to have exceeded its recent wave of infection rates. However, with vaccination rates so low, the country is already gearing up for a third wave.

“Shipping rates and delays have increased since the start of the second quarter. There are delays of up to two weeks in securing space on ships.”

US considers Section 232 for neodymium magnets

Neodymium magnets are used in a wide variety of critical high-tech functions, from MRIs to wind turbines to automotive engines.

In its recent supply chain review, the Biden administration raised neodymium magnets and the possibility of launching a Section 232 investigation.

In 2018, then-President Donald Trump rolled out the rarely used Section 232 of the Trade Expansion Act of 1962 to eventually impose tariffs on steel and aluminum.

“Neodymium permanent magnets (NdFeB) play a key role in motors and other devices, and are important for civil and military industrial uses,” the administration’s supply chain report said. “Yet the United States is heavily dependent on imports for this essential commodity. We recommend that the Ministry of Commerce assess whether it is appropriate to initiate an investigation into neodymium permanent magnets under section 232. “

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