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SUPPLY PROSPECTS FOR AUTOMOTIVE STEELS

Steel availability for the automotive industry should remain adequate, despite the rise in foreign steel imports and a cutback in U.S. capacity. Domestic automotive output has dropped, and imports now represent more than 20% of the market. Steel industry operations have been reduced from a high of 94% capacity in May 1979 to less than 80% of capacity. In assessing long-term prospects for automotive steel availability, one must assume that automotive demand will pick up. The United States has between 152 and 154 million tons of raw steel capacity, and Canada has 17 million tons. Canada will add 2 to 3 million tons by 1985, while U.S. capacity will remain stable. In Western Europe, there will be a decline in existing capacity of at least 10%, as the United Kingdom, Belgium, West Germany, Italy, and Spain shut down facilities. There are no plans to increase capacity in Japan, although Third World countries have rather ambitious plans. Demand for steel on a worldwide basis is projected to increase about 3% annually, resulting in a short supply of steel in the middle 1980's, but the automotive industry is not expected to suffer from the shortage.

  • Supplemental Notes:
    • Published in HS-029 019 (SAE-SP-462), "Materials Availability for Automotive Applications," Warrendale, Pennsylvania, 1980, p 9. Presented at SAE Congress and Exposition, Detroit, 25-29 February 1980.
  • Corporate Authors:

    Society of Automotive Engineers (SAE)

    400 Commonwealth Drive
    Warrendale, PA  United States  15096
  • Authors:
    • Hogan, W T
  • Publication Date: 1980

Media Info

  • Pagination: 1 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00382545
  • Record Type: Publication
  • Source Agency: National Highway Traffic Safety Administration
  • Report/Paper Numbers: SAE 800114, HS-029 021
  • Files: HSL, USDOT
  • Created Date: Apr 30 1984 12:00AM