December 04, 2008

High steel prices forcing Chinese auto majors to find substitutes

It is reported that due to continuous price hike of steel products and fierce market competition in auto industry, many Chinese and foreign automakers have tried to use new materials to substitute for auto steel plate.

Mr Shi Jianhua deputy general secretary of China Automotive Industry Association said that the application of steel in auto making is decreasing, while the proportion of such light metal materials as aluminum and magnesium used has kept increasing. He said “The proportion of steel substitute materials, featuring light and high strength for sedan use is increasing rapidly. Aluminum, magnesium and plastics have become the first choice materials used to replace steel plate in auto making industry, due to their light weight and high strength.”

However, as China's auto industry is expanding as a whole, the industry's demand for steel is also expanding. China's auto making industry is expected to need 12.55 million tonnes of steel in 2007 and 21.76 million tonnes by 2015.