2016 OUTLOOK: No comfort for steel sector in China’s car output targets

Will China’s automotive industry continue to enjoy steady growth and to drive demand in the upstream steel market in 2016? Most participants in the sector are not optimistic about the prospects.

Major concerns include the slowdown in the country’s economic growth, stricter controls on traffic and emissions, as well as the fact that China’s automotive market has already entered a “bottleneck” period.
Cautious outlook
Industry participants are generally cautious in their outlook for the 2016 car market.
At an industry conference held in Chongqing last month, most attendees surveyed by Steel First expected the country’s vehicle sales to stay largely flat or to increase only slightly in the next year or so.
Shi Jianhua, vice secretary general of the China Assn of Automotive Manufacturers (CAAM), told delegates at another conference in late December that the country’s car market is likely to see sales growth in 2016 of around 5%.

The association predicted at the beginning of this year that the Chinese industry could enjoy a growth rate of around 7% this year, but then lowered the target...


Della Fu

December 31, 2015

16:40 GMT