SHANGHAI, Sept. 15 (SMM) -- According to the China Association of Automotive Manufactures (CAAM), China’s automobile production and sales were 1.39 million units and 1.38 million units during August, up 6.66% and 8.29% MoM, and up 8.72% and 4.15% YoY, respectively.
China’s automobile sales growth has fallen significantly since the start of 2011 due to the end of automobile incentive policy and limited growth of consumption. Data shows that China’s automobile production and sales from January to August were 11.86 million units and 11.98 million units, only up 3.04% and 3.33% YoY, respectively, much lower than the YoY growth of 39% for both production and sales in the same period of 2010.
Slower growth of automobile consumption exerted great impact on consumption of cast aluminum. According to SMM sources, cast aluminum suppliers said the growth of domestic demand slowed in 2011, and weaker automobile consumption in 3Q further depressed demand for cast aluminum, with domestic sales generally poor. Although automobile production and sales increased in August, the growth was limited. Meanwhile, the number of cast aluminum suppliers increased, leading to more fierce market competition. As a result, consumption of cast aluminum remained weak, and operating rates at cast aluminum enterprises fell further in response.
In summary, cast aluminum sales remain poor in August despite recovering automobile sales and current peak-demand season in September and October.