The automotive industry is one of the largest consumers of steel, with a significant portion of its needs met through high-value-added steel products. However, in China, many automakers have long relied on imported auto sheets due to limited domestic production capacity for certain premium-grade materials. Baosteel, a leading steel producer, has made significant strides by supplying its brand of auto plates to over 56 domestic manufacturers, helping to challenge the dominance of imported products that had long held a monopoly in the market.
Despite these efforts, more than 60% of high-end cold-rolled steel and other specialized materials are still imported. Steel remains a critical component in vehicle manufacturing, accounting for 60% to 70% of total material consumption. It includes structural components like body panels, inner liners, and transmission gears, as well as special steels tailored for performance and durability.
Industry experts noted in 2006 that demand for automotive steel followed broader industrial trends—unit consumption was decreasing, but overall demand continued to grow. At the same time, there was an increasing need for higher-performance and more specialized steel grades, which created a persistent supply-demand gap for some critical materials.
In the entire car production process, about 50% of the materials used are steel plates, while iron castings make up around 20%. Since the 1990s, Baosteel has been at the forefront of developing advanced automotive steel, including O5 grade sheets. After more than a decade of development, Baosteel’s automotive panels now rank among the best globally, with high-strength, double-sided galvanized sheets being used in luxury vehicles like Audi and Buick.
However, despite progress, many high-value-added steel products remain under development. Although some trials have succeeded, limited demand and high production costs prevent mass production. For example, ultra-low carbon and ultra-deep drawing (DEEQ/UEDDQ) IF steel, bake-hardened (BH) high-strength plates, and phosphorus-containing steels are still in trial stages, with some specifications difficult to produce domestically.
Zinc-iron alloy galvanized sheets, which are essential for the automotive industry, are only produced in small quantities by WISCO. Other advanced types, such as zinc-nickel electroplated or thick-plated galvanized sheets, are not yet available in China due to technical and raw material constraints.
Steel accounts for a large portion of a car’s weight, particularly in the body and chassis, making it a key target for weight reduction. High-strength steel, such as the type used in the Chrysler 300C, offers improved strength while allowing thinner panels, thus reducing overall vehicle weight without compromising safety.
While high-strength steel has clear benefits, it also presents challenges. It is more brittle and prone to rebound, limiting its use to areas where deep drawing is not required. These materials are commonly found in luxury cars like Mercedes, BMW, and Audi. To use them effectively, advanced stamping technologies are necessary, and companies like Beijing Bruns have already mastered this technique.
According to a representative from a foreign steel company, China’s auto industry is experiencing rapid growth, and the demand for high-grade automotive steel is expected to rise significantly in the medium to long term. However, the current supply chain struggles to meet this demand, resulting in a substantial import gap. By 2010, the demand for cold-rolled sheets alone is projected to reach 32 million tons, far exceeding domestic production capabilities. This highlights the ongoing need for innovation and investment in the domestic steel sector to support the growing automotive industry.
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