China's vehicle sales and production in January jumped sharply from year-earlier levels but slowed from December as semi-conductor chip shortages curbed production.
Vehicle sales rose by 29.5pc to 2.503mn in January from a year earlier but fell by 11.6pc from December 2020. Production rose by 34.6pc to 2.388mn from the previous year, while dropping by 15.9pc from December, the China association of automobile manufacturers (CAAM) said.
The sharp gains over January 2020 were driven by the timing of the lunar new year holiday in late January 2020 and the beginning of Covid-19 lockdowns, CAAM said. The holiday falls in February this year.
Supply shortages of semi-conductor chips since late 2020 slowed China's auto production in January and may continue to affect the sector negatively, CAAM said. Outlooks are uncertain and the shortage could disrupt growth of China's auto industry, CAAM said.
Shanghai HRC ex-warehouse prices fell by 100 yuan/t ($15.50/t) to Yn4,480/t on 29 January 2021 from Yn4,580/t on 31 December 2020, in line with the slowdown of the auto industry.
China exported a record-high 119,000 vehicles in January, up by 73pc on the previous year and down by 17.6pc on a month earlier, with passenger car exports rising by 76.9pc on a year earlier and falling by 21.5pc from the previous month to 91,000 units, according to CAAM data.
China's auto sector accounts for less than a tenth of its total steel demand, especially for hot-rolled coil, and around a third of global auto sales.
| China car sales, production | ('000) | ||||
| Jan '21 | Dec '20 | m-o-m ± % | Jan '20 | y-o-y ± % | |
| Total vehicle sales | 2,503 | 2,831 | -11.6 | 1,933 | 29.5 |
| Total vehicle production | 2,388 | 2,840 | -15.9 | 1,774 | 34.6 |
| Passenger car sales | 2,045 | 2,375 | -13.9 | 1,613 | 26.8 |
| Passenger car production | 1,910 | 2,331 | -18.1 | 1,443 | 32.4 |
| Source: CAAM | |||||
