In China, the auto sector consumed 4.71mn mt of steel in January, down by 5.9pc from the preceding month, but up by 39.9pc from Jan 2020, according to media reports. In the month, 2.38mn units were produced in China, up by 34.6pc from January last year.
In January 2020, the Chinese New Year holidays were extended by the government as the COVID-19 pandemic began to grip the country. Although steel production continued at the usual pace, demand in downstream industries remained hit as the Chinese government laid down restrictions to curb the spread of the virus.
Compared to December, production of auto fell by 15.9pc and dragged down steel consumption. Semi-conductor shortage and disrupted supply chain due to a resurgence of COVID-19 pandemic in many parts of the world impacted auto production.
Segment wise steel consumption
|Jan 2021||Y-o-Y change||M-o-M change|
|Passenger cars||2.15mn nt||30.8pc||-19.1pc|
|Commercial vehicles||2.20mn mt||51.9pc||15.7pc|