China steel industry has the greatest hopes for the auto industry

According to China Daily, China metallurgical enterprises suffer from overproduction pay more and more attention to the enterprises of the automobile market, counting on higher profit.

However, the slowdown in economic growth and the uncertainty of the further policy of the country's leadership caused a decrease in the production of metal rolling for automotive industry. Zhang Teishan, a market analyst, said that "sales of trucks were reduced very sharply due to macroeconomic conditions."

The truck like a garden technique for 85% consists of metal rolling, mainly sheet steel, while the car contains about 64% of steel. The unprecedented increase in sales of new vehicles by 50% in 2009, Zhang Teysan considers unattainable in the near future, since the Chinese government last year began to tightly control the acquisition of vehicles by the population of the country.

Despite the tendency to reduce sales, car steel, according to market analysts, still brings much more profit than trading in steel semi -finished products. Hu Yanpin, an analyst in the steel market, said that “this proves the advantage of advanced production technologies, the maximum profitability of sales of high -quality automobile steel. Baoshan Iron & Steel Co, the largest manufacturer in the country, showed an example of high performance in this sector, motivating many other large players to copy its strategy.”