Steel Markets
January 15, 2021
CRU: Auto Industry Acceleration Delayed While the Chips are Down
Written by Ippolito Tarabini
By CRU Economist Ippolito Tarabini and Multi-Commodity Analyst Zanna Aleksahhina, from CRU’s Steel Sheet Products Monitor
There is a global semiconductor shortage. It was ignited by strong demand for consumer electronics during the COVID-19 pandemic and it is now threatening auto production around the world. We expect it to reduce global vehicle output by around one million units in Q1, constraining production mainly in China, the U.S. and Western Europe. But once resolved in the second half of the year, we see the auto industry finally accelerating.
