Posted on 15 Dec 2020
Chinese vehicle sales and production rose for an eighth straight month to hit 2020 highs in November on sustained growth supported by government policies.
The higher sales in November gave China its seventh consecutive month of growth above 10pc, according to China association of automobile manufacturers (CAAM) data.
January-November sales further narrowed falls from the year-to-date decline of 4.7pc in October, 6.9pc in September and 9.7pc in August. January-November vehicle production also narrowed its falls from 4.6pc through to October.
China's auto sector accounts for less than 10pc of its total steel demand, especially for hot-rolled coil (HRC), and around a third of global auto sales.
Shanghai HRC ex-warehouse prices increased by 280 yuan/t ($43/t) to Yn4,230/t on 30 November from Yn3,950/t on 30 October, in line with the rapid recovery of the auto industry. Auto steel demand has helped lift cold-rolled coil prices to the highest premium to HRC since 2017.
China's auto exports set an all-time high of 122,000 vehicles in November, up by 11.6pc on the previous month and up by 46.7pc from a year earlier. January-November exports reached 850,000 units, down by 7.3pc.
China's vehicle demand will be sustained in the coming months with China's economy maintaining steady growth and domestic stimulus policies promoting sales of electric and traditional vehicles. But vehicle production is likely to slow in next year's first quarter as some auto manufacturers face a shortage of semiconductor chips, CAAM said.
Source:Argus
