Chinese automotive production was 2.39 million units in January, down 15.92% month-on-month but up 34.6% year-on-year, according to data from the China Association of Automobile Manufacturers (CAAM).
Passenger car and commercial vehicle output was 1.91m units and 478,000 units respectively, up 32.4% and 44.3% y-o-y. New energy vehicle production surged 290% y-o-y to 194,000 units. Due to the strong performance of commercial vehicles, Chinese automotive steel demand fell more slowly than automotive production on-month, Kallanish notes.
Implied finished steel demand calculated by Kallanish from the CAAM data was down 9.83% m-o-m at 4.14 million tonnes in January. Monthly demand fell for the first time since last September.
In addition, the National Development and Reform Commission said on 8 March that it will continue to carry out policies to support rural car purchases and car trade-ins. It has also instructed some regions and cities to continue to liberalise purchasing restrictions for new energy vehicles. These policies are expected to support automotive steel demand in 2021.
By Kallanish Team
