Steel consumption to rise as China’s car market will regain momentum May-June

SHANGHAI, May 11 (SMM) – SMM takes an optimistic outlook for the near-term demand for steel plate as the downstream car market has recovered in an orderly manner and greater growth potential is expected in the months ahead. 

A total of 204 production bases under 23 auto companies in China, except for the Xinjiang factory of SAIC Motor, have all restarted operations as of May 11, according to a survey by the China Association of Automobile Manufacturers (CAAM).

China’s auto market is expected to gain growth momentum in the upcoming two months after the rebound of the market in April failed to meet expectations. Nonetheless, CAAM estimates a decline of 15-25% in domestic car sales this year due to the damage caused by the coronavirus in January-February.