Posted on 15 Oct 2026
China's car and steel industries are facing challenges.
Domestic car sales are still weak. In September, passenger car sales fell by 28% from a year ago, reaching around 1.62 million units. Sales in the first nine months of the year were also down by 22% from last year. The market is not expected to improve much this year or next year.
However, passenger car exports are growing quickly. In September, the export volume increased by 73.7% compared with last year. Exports now make up 36% of total car sales, compared with 19% one year ago. For many automakers, exports have become an important source of sales and profit.
Even so, strong exports cannot fully replace weak domestic demand. This has reduced demand for steel used in car production. Demand for cold-rolled steel has fallen in September and October, which has also weakened demand for hot-rolled coil.
As steel demand remains weak, most Chinese steelmakers are earning less profit or losing money. Many mills have cut production, but the reductions have been too small to support steel prices.
For the rest of the year, steel demand is expected to stay weak, and major production cuts are unlikely. As a result, steel prices are expected to remain low and move within a narrow range.
Source:Yieh
