Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

Improving auto sector supports cold-rolled coil demand in China

Commodities | Agriculture | Biofuels | Grains | Sugar | Natural Gas | Oil | Crude Oil | Shipping | Tankers | Coronavirus

Market Movers Americas, July 13-17: NYMEX RBOB returns to backwardation, but coronavirus threatens gasoline demand recovery

Jet Fuel

Platts Jet Fuel

Capital Markets | Commodities | Electric Power | Natural Gas

Mexican Energy Conference, 24th

Coal | Emissions | Electric Power | Renewables | Natural Gas | Metals | Steel | Shipping

Japanese firms explore methanation technology for GHG emission cuts in shipping

Improving auto sector supports cold-rolled coil demand in China

Singapore — China's domestic passenger car market showed further signs of improvement in October, providing decent demand for cold-rolled coil as car makers restocked. But the outlook for the rest of this year remains fairly muted, according to market sources.

China's passenger car retail sales in October were down 3% on the year after rallying late in the month, according to the China Passenger Car Association. Though still down on the previous year, October sales were better than the 6.5% fall in September and a near 10% drop in August.

The association believed the passenger car market had gradually stabilized.

One mill source said cold-rolled auto sheet orders received at his company in October had increased by 10% from September, and were back to a similar level as a year earlier. He said this was mainly because car producers needed to speed up production of vehicles that met phase six emission standards, after clearing inventories of phase five-standard cars over the past few months.

As a result of improved demand from the car manufacturing sector, the spread between CRC and hot-rolled coil has increased from Yuan 238/mt ($34/mt) in late May to Yuan 683/mt as of early November, S&P Global Platts data shows. This indicates that Chinese domestic CRC sales are once again profitable, as the cost of turning HRC into CRC is Yuan 400-500/mt.

However, the mill source said car producers remained cautious and preferred to keep their steel inventories at 1.5-2 months, down from 3-4 months last year.

He said steel demand from car producers was unlikely to improve further in coming months, as they had almost completed near-term restocking amid a generally sluggish auto sector.

-- Analyst Jing Zhang,

-- Edited by Geetha Narayanasamy,