Posted on 15 Aug 2024
China's automotive market entered the traditional summer off-season in July, with some carmakers giving workers days off due to high temperatures, slowing down production and sales, according to the latest release by the China Association of Automobile Manufacturers (CAAM).
Last month, China's auto dealers sold 2.26 million units, down 5.2% on year, while the country's vehicle output also slipped by 4.8% on year to 2.29 million units, according to the CAAM data. The sales and production figures were also lower by 11.4% and 8.8% respectively compared to the previous month.
For January-July, the country's total automobile sales increased by 4.4% on year to 16.3 million units while output gained by 3.4% on year to 16.2 million units, though the rises narrowed by 1.7 percentage points and 1.5 percentage points from the first half of this year, the statistics show.
As for passenger cars, sales and production in July reached 1.99 million units and 2.03 million units, down 5.1% and 4% on year respectively. The results were also down 10% and 6.8% on month. During the first seven months, China sold 13.97 million passenger vehicles and produced 13.92 million units, higher by 4.5% and 3.9% respectively on year, according to the association.
Meanwhile, vehicles for commercial use saw their sales slide by 6.6% on year to 268,000 units in July, while their output fell by 10.5% on year to 256,000 units. And on a monthly basis, the declines were larger at 20.4% and 22.4% respectively, according to the release.
Over January-July, sales and production of commercial vehicles ticked up by 3.5% and 0.4% respectively on year to 2.34 million units and 2.26 million units.
The new-energy vehicle (NEV) segment continued its upward momentum in July, with sales jumping by 27% on year to 991,000 units, contributing to 43.8% of the country's total car sales. In parallel, NEV output grew by 22.3% to 984,000 units over the same period.
China's NEV sales and output in the past seven months totalled 5.93 million units and 5.91 million units, rising by 31.1% and 28.8% respectively compared to the same period last year, according to the latest data.
In terms of auto exports, China sold 469,000 units abroad in July, up 19.6% on year though down 3.2% on month. The total volume for January-July swelled by 28.8% on year to 3.26 million units.
China automotive sector's performance in July | ||||||||
'000 units | Jul 2024 | Jan-Jul 2024 | ||||||
Sales | YoY (%) | Output | YoY (%) | Sales | YoY (%) | Output | YoY (%) | |
All autos | 2,262 | -5.2 | 2,286 | -4.8 | 16,310 | 4.4 | 16,179 | 3.4 |
NEVs | 991 | 27 | 984 | 22.3 | 5,934 | 31.1 | 5,914 | 28.8 |
Source: CAAM |
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MONTHLY: Chinese BF mills suffer more losses on steel sales
Source: Mysteel Aug 14, 2024 15:40
Chinese blast-furnace (BF) steel mills suffered more losses on finished steel sales in July, as the negative sentiment in the domestic market caused steel prices to fall sharply, according to Mysteel's latest monthly survey among the 91 BF mills under its tracking.
Last month, the average loss on rebar sales among the sampled Chinese steel producers came in at Yuan 249/tonne ($35/t), deepening by Yuan 151/t from the prior month.
Meanwhile, the surveyed BF mills lost an average of Yuan 150/t on sales of hot-rolled coil (HRC) in July, as against the profit of Yuan 19/t in June, while their average loss on sales of medium plate widened by Yuan 75/t on month to reach Yuan 90/t, the survey results showed.
Chinese BF mills' profits on finished steel sales (Unit: Yuan/t)
Products | Jul | Jun | MoM |
Rebar | -249 | -98 | -151 |
HRC | -150 | 19 | -169 |
Medium plate | -90 | -15 | -75 |
Source: Mysteel
The rapid expansion in the Chinese mills' losses was mainly blamed on the fast fall in finished steel prices, as demand from end-users remained dull during the usual summer lull, with the high temperatures and frequent heavy rains in most regions of China impacting user industries such as construction.
Besides, during July many domestic rebar mills and traders made more concessions in their offering prices to facilitate sales and so reduce their stocks at hand. Both need to clear their yards of existing rebars before new production and quality standards for rebars take effect on September 25, as reported.
China's finished steel prices dropped further in July, with the national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment under Mysteel's assessment, reaching Yuan 3,381/t including the 13% VAT as of July 31, lower by Yuan 245/t on month.
By the end of July, the price of Q235 4.75mm HRC had slipped by Yuan 239/t on month to Yuan 3,488/t including the 13% VAT, according to Mysteel's assessment.
Finished steel sales in the spot market stayed low, with the daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 traders under Mysteel's tracking averaging 116,495 tonnes/day in July, lower by another 2,917 t/d from June.
Chinese steel mills' production costs also declined somewhat last month, but the reduction could not improve their profitability as the limited decrease was offset by the substantial fall in finished steel prices, Mysteel Global noted.
For July, the cost of making hot metal among the 91 surveyed mills was assessed by Mysteel at Yuan 2,675/t excluding the 13% VAT, slipping by Yuan 40/t or 1.5% on month, mainly due to the lower prices of some steelmaking raw materials such as iron ore, according to the survey.
Last month, the Mysteel SEADEX 62% Australian Fines index for iron ore averaged $105/dmt CFR Qingdao, down by $1/dmt on month, while the price of second grade metallurgical coke in North China under Mysteel's assessment gained by Yuan 6/t on month to reach Yuan 1,957/t on average.
Source:Mysteel Global
