Analysis of Development Status and Trend of Domestic Automotive Steel Plate Market

Rapid development of domestic automotive market demand for steel

Since the reform and opening up more than 30 years ago, it is also a period of rapid development of China's auto market. Although the growth rate of production and sales in the domestic automobile market has slowed in recent years, it is still growing faster than other manufacturing industries.

In 2013, both the production and sales volume of China's auto market exceeded 20 million units; in the first five months of 2014, the total production and sales volume was close to 10 million, which was 9,928,800 and 9,983,100 respectively, an increase of 9.37% and 8.97% year-on-year respectively. As the country vigorously develops new types of urbanization and accelerates the implementation of a series of major measures in the relatively backward areas in the central and western regions, the consumption of the automobile market in the future will continue to maintain a relatively high growth trend. In addition, the concept of environmental protection has been deeply rooted in people's minds in recent years, and users have new demands for automotive environmental protection and energy saving requirements. Therefore, the development of new energy vehicles is rapidly increasing.

The rapid development of the automotive industry has also led to an increase in the demand for its upstream major raw material industries; steel, as the main raw material for automobile production, accounts for approximately 72%~88% of the automotive raw materials; it is estimated that the average steel consumption per vehicle will be 1ton. In the year, the consumption of steel for automobile production in China will exceed 20 million tons. In the domestic market, there is a huge amount of steel used for maintenance, and the demand for steel in the domestic automobile industry is very large.

The steel market for automobiles is huge, Baosteel Auto is "outstanding" and its import dependence is still high.

As mentioned above, as the main raw material for automobile production, China’s annual auto steel consumption exceeds 20 million tons; while auto steel as high-end steel, domestic only Baosteel, Wuhan Iron and Steel, Anshan Iron and Steel, Shougang, Guangzhou Steel, plus just put into production Some large steel mills such as Ling Steel can produce steel, and foreign steel companies are directly building factories in China, still unable to meet domestic demand. Among them, the market share occupied by Baosteel is the highest, and only 2 million tons of auto plates are supplied to major auto manufacturers in China. However, in terms of the auto plate market, there are still some 1.5 to 2 million tons of blanks in China that need to be imported from abroad. Imports, together with other automobile steels, have a greater dependence on the external steel consumption of automobile production in China, which restricts the development of the automobile industry to some extent.

At the same time, relative to the quality of automobile panels in developed countries, China's existing automotive panel varieties are also relatively inadequate; more high-strength lightweight automotive panels are still not commercialized for mass production; therefore, in the domestic automotive panel market, we still exist. Single product, high-end steel R & D capabilities and supply in short supply contradiction.

Valin's Anmi project shakes domestic auto market situation

Recently, the car plate project of Valin ArcelorMittal Automotive Plate Co., Ltd. is officially put into production. After it is fully put into production, it will form a production scale of high-end automotive plates with an annual output of 1.5 million tons, which will effectively meet the needs of domestic automobile manufacturers. At the same time, it will also have a certain impact on the market share of Baosteel, an old car plate manufacturer.

It is understood that the output of the VAMA automotive panel project is approximately 1.5 million tons. Anmi's most advanced third-generation automotive panel production technology will be introduced, including high-strength steel with a strength of 1200 MPa, ultra-high-strength steel and Usibor 1500. Among them, 1500 megapascal strength steel is still not commercially available in mass production; therefore, after the mass production of this type of automotive plate will form a rapid share of the domestic market, and even can not rule out the "grab" part of the import market share.

In addition, the VAMA high-strength steel to be produced by the Hualing Anmi project will also bring new changes to the domestic market in terms of environmental protection and energy conservation. In theory, the total weight of C-class vehicles using VAMA high-strength steel will be reduced by 19%, and in the entire vehicle life. The cycle can reduce carbon emissions by 14%. For the current domestic environmental protection and energy-saving lifestyles, it will be more favored by automobile manufacturers. It is not even ruled out that the domestic auto board manufacturers will accelerate the development of environmental-friendly auto board R&D and production technologies, and will drive the steel industry further to the high-end market.

Bring positive influence to domestic auto board market

More and more steel enterprises have chosen to enter the high-end steel field in the adjustment of industrial transformation and upgrading; in recent years, China's high-end steel industry is also developing rapidly. In the case of continuous losses in the low-end steel industry, Baosteel and other major production Steel companies that sell high-end steel can continue to maintain a considerable profit. It shows that the profitability of high-end steel products is still high. It is precisely because of this that many steel mills either invest heavily in independent research and development, but more often choose to cooperate with international counterparts and introduce advanced production and management technology experience through joint venture projects. Promote the development of high-end steel in China.

The introduction of foreign advanced production technology and management experience will bring far-reaching impact to China's auto board market.

First of all, it has impacted the original car board market in China. In the existing domestic auto board market, Baosteel Baosteel is the undoubted leader, and it is difficult for Wuhan Iron and Steel and other steel mills to form an effective impact on this market. After Valin Anmi's “VAMA Automotive Board” project is put into operation, it will inevitably disrupt the existing car board market map; according to its full-scale production capacity of 1.5 million tons per year, it will account for the total demand for automotive boards nationwide. About 10% of it will inevitably impact on the market share of the original automobile plates of Baosteel, Wuhan Iron and Steel, Shougang, Guangzhou Iron and Steel, Anshan Iron and Steel and other steel enterprises; and further create a more benign competitive atmosphere in the domestic auto plate market.

Second, to promote domestic steel companies to strengthen the research and development of high-quality automotive plate varieties. Compared with the varieties of automotive steel used in developed countries, the quality of domestic automotive plates is relatively backward, especially the use of ultra-high-intensity automotive plates. The rapid development of China's auto industry technology and the increase in the level of user demand have led to higher and higher requirements for the quality of automotive panels. Similar to the introduction of Anmi, which is a joint venture with the world's most advanced automobile steel production technology, it is a reliable short-cut for rapid quality improvement of China's automotive panel industry. Other domestic steel companies will also accelerate their own production process in the face of the threat of high-quality automotive steel competition, which will promptly promote the upward development of China's high-strength automotive panel industry.

Thirdly, it effectively alleviates the dependence of domestic auto companies on imported high-strength automotive panels. As the world’s largest steel producer and consumer country, China’s production and manufacturing companies still need to import a large amount of steel from abroad to fill in. On the one hand, it is the excessive supply of low-end steel products that makes the industry difficult to make profits; on the other hand, it is in the high-end steel industry. Foreign steel companies "plunder" to take a lot of profits, can not be unfair. Basically, China still does not have enough high-end automotive plate production capacity; therefore, it has high-end production technology experience, and accelerates the domestic steel enterprises high-end steel output capacity, can effectively reduce the dependence of domestic steel enterprises on imported steel, can be larger Reduce the production costs of car companies and the maintenance costs of vehicles for maintenance in the later period.

Ammonia cracker

Ammonia cracker of XRAQ(FC)series takes liquid ammonia as the source material ,and when heated, decomposes into the mixed gas of 75% H2 and25% N2 under the action of catalyst.


Some of the usages of Ammonia cracker of XRAQ series:

1) It is used as the protective gas in the furnace which produces and processes the black metal, on-ferrous metal, metal plate, strip, wire material tubing and standard parts of machinery.

2) It is used as the shielding gas of tinning bath in the float glass production.

3) It is applied to the sintering circuit of cemented carbide and powder metallurgy.

4) It is applied to the sintering of high-temperature refractory (such as silicon carbide, silicon nitride)

5) It is used as the reducing gas in chemical industry.

6) It is used for deoxidization by hydrogenation in the nitrogen purification.

The Advancement of XRAQ(FC) series:


1)Low cost:Device of XRAQ(FC)series is an easy way to get the mixed gas of N2 and H2.Compared with hydrogen generation device by water electrolysis, it possesses the advantage of low investment, simple structure and easy operation.

2)Reliable Performance: Temperature is controlled by automatic temperature controller; flow rate is regulated by valves; no need of specially trained operators; stable gas can be get consecutively.

3) High quality catalyst, stainless steel that is heat and corrosion resistant, nickel chrome electric heating element are selected to use, which prolongs the service life.

4) Strong technological team and high-quality after-sale service. When installed on spot, the only thing to do is to connect the gas source and power. Excellent electrical and mechanical assembly technology; Continuous technical services are provided; Responsible for on-site commissioning and training.


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