SDI expects NorthAm auto builds up in 2023

US steelmaker Steel Dynamics (SDI) expects total North American automotive production to increase by as much as 5.6pc in 2023.

Auto builds in North America — the US, Canada and Mexico — are expected to be between 15-15.1mn units in 2023 compared with 14.3mn in 2022, the company's chief executive Mark Millett said on an earnings call this morning.

The increased build rate indicates increased steel consumption from the industry, which as been dogged by supply chain shortages since late-2020, costing it the production of millions of vehicles.

"Dealer inventories have improved but still remaining meaningfully below historic norms," Millett said.

Demand is expected to remain steady in the non-residential construction market, where SDI has a fabrication backlog. Millett said residential construction has "softened" and is impacting demand for heating, ventilation and air conditioning (HVAC) and appliance products.

Construction projects are not being cancelled, though some have been delayed, Millett said, which he believes indicates that the construction cycle will be pushed out further.

By Rye Druzin