China's auto sales drop in 2018 dampens outlook for steel demand

China’s auto sales fell last year for the first time since the 1990s, dampening expectations for steel demand in 2019 although some in the market think that there are still opportunities for steelmakers to remain profitable.

Sales totaled 28.1 million units last year, down 2.8% from those sold in 2017, according to statistics from the China Association of Automobile Manufacturers (CAAM). The sales decline, coupled with a 4.2% drop in output to 27.8 million units, was mainly due to China’s macroeconomic slowdown and weakening consumer confidence, as well as the country’s trade war with the United States, the association said on Monday January 14. The CAAM expects China’s car sales this year to be steady at around 28.1 million units, taking into account a sales spike in 2016 due to...

Published

Miranda Song

January 17, 2019

05:55 GMT

Shanghai