It is still a long way to go for the domestic production of automotive steel in China
The automotive industry is one of the largest consumers of steel, with a significant portion of its requirements met through steel products. However, in China, some high-value-added steel products used in the automotive sector are not yet produced domestically, leading to heavy reliance on imports for critical materials like automotive sheet metals. Baoshan Iron and Steel (Baosteel) has made significant strides in this area, as over 56 domestic automakers have adopted its auto-grade steel plates, challenging the long-standing dominance of imported materials in the market.
Despite these efforts, high-end cold-rolled sheets and other specialized steel products remain in short supply, with more than 60% still being imported. In terms of raw material composition, steel accounts for 60% to 70% of the total materials used in car manufacturing. This includes components such as body panels, structural beams, inner linings, and transmission gears—each requiring specific types of steel tailored for performance and durability.
Industry experts noted that by 2006, the demand for automotive steel mirrored broader trends in industrial steel: unit consumption was decreasing, but total demand was rising. There was an increasing need for higher-quality and more specialized steel products, which created a persistent gap between supply and demand for certain high-performance steels.
In the entire car manufacturing process, steel plates make up around 50% of the materials used, while various iron castings account for approximately 20%. Since the 1990s, when Baosteel first developed O5 grade automotive steel plates, Chinese steel producers began focusing more on the automotive sector. Companies like Shougang and Wuhan Iron & Steel also started developing their own automotive steel products, gradually replacing imported materials in many foreign cars.
To meet growing domestic demand, strategic partnerships were formed between major steel companies and automakers. For example, Baosteel and Angang partnered with FAW and Dongfeng Motor, while Panzhihua Iron & Steel also established a joint venture with Dongfeng. These collaborations helped boost local production and reduce dependency on foreign suppliers.
After more than a decade of development, Baosteel’s automotive panel production reached international standards, with high-strength, double-sided galvanized sheets being supplied to premium brands like Audi and Buick. This marked a turning point in breaking the monopoly of imported auto plates.
However, challenges remain. Many high-value-added steel products, such as zinc-iron alloy galvanized sheets, are still under development. Although some trials have been successful, limited demand and high costs prevent mass production. For instance, ultra-low carbon and ultra-deep drawing (DEEQ/UEDDQ) IF steel, bake-hardened (BH) steel, and phosphorus-containing high-strength steel are still in trial stages, with certain specifications difficult to produce in mainland China.
Moreover, deep-drawing galvanized sheets with high strength and zinc-nickel electroplated sheets cannot be manufactured due to lack of appropriate technology and raw material supply. This creates a significant gap in the market, especially for high-end automotive applications.
Steel remains a critical component in vehicles, making up over 65% of a car's weight, particularly in the body and chassis. Reducing the weight of the car body without compromising safety is a key goal, and high-strength steel plays a vital role in achieving this. For example, Chrysler 300C models produced by Beijing Bruns use high-strength plates with elevated levels of phosphorus and antimony, allowing for thinner, lighter panels without sacrificing structural integrity.
While high-strength steel offers benefits, it also presents challenges. It is more brittle and prone to rebound during forming, making it suitable mainly for less complex parts like outer covers. High-end brands like Mercedes, BMW, and Audi extensively use such materials, but they require advanced stamping technologies. Beijing Bruns has mastered these techniques and is now applying them in production.
According to a representative from a foreign steel company, China’s auto industry is experiencing rapid growth, and demand for high-grade automotive steel is expected to increase significantly in the medium to long term. However, the supply-demand imbalance remains a critical issue, with large volumes still needing to be imported. By 2010, it was estimated that China’s demand for cold-rolled sheets would reach 32 million tons, far exceeding domestic production capacity.
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