The automotive industry is one of the largest consumers of steel, with a significant portion of its requirements met through imported materials. In China, despite the efforts of domestic steel producers like Baosteel, some high-value-added steel products used in car manufacturing are still not produced domestically, leading to a heavy reliance on imports. Baosteel has made notable progress by supplying auto-grade steel plates to over 50 Chinese automakers, helping to challenge the dominance of imported materials in the market. However, even with these advancements, more than 60% of high-end cold-rolled sheets and other specialized steel products remain imported due to limited domestic production capabilities. Steel accounts for 60% to 70% of the materials used in automobile manufacturing, including structural components like body panels, inner liners, and transmission gears. The demand for higher-performance and more specialized steel continues to rise, but supply chain gaps persist, especially for advanced grades such as ultra-low carbon or high-strength steel. In recent years, domestic steel companies have made strides in developing their own automotive steel products. Baosteel, for instance, started producing O5 steel plates in the 1990s and has since become a leader in the global automotive panel industry. Its high-strength, double-sided galvanized sheets are now used in premium vehicles like Audi and Buick, reducing the need for expensive imports. Other major players, including Shougang and Wuhan Iron & Steel, have also entered the market, contributing to the growth of domestic automotive steel production. Despite this progress, many high-value-added steel products are still in the trial stage, hindered by high costs and limited demand. For example, zinc-iron alloy galvanized sheets, which are essential for certain automotive applications, are only produced in small quantities by WISCO. Similarly, deep-drawing and high-strength galvanized sheets are not yet available domestically due to technological and material constraints. The weight of a vehicle plays a critical role in fuel efficiency and performance, with steel making up the majority of a car’s structure. High-strength steel offers a solution to reduce vehicle weight without compromising safety. Chrysler’s 300C sedan, produced by Beijing Bruns, uses a special high-strength plate with elevated levels of phosphorus and antimony, allowing for thinner panels that maintain structural integrity. However, this type of steel is more brittle and requires advanced stamping technology, making it suitable mainly for high-end models from brands like Mercedes, BMW, and Audi. Experts predict that as China's auto industry continues to grow, the demand for high-grade automotive steel will increase significantly. By 2010, the demand for cold-rolled sheets alone is expected to reach 32 million tons, far exceeding domestic production capacity. This growing gap highlights the need for further investment in research, development, and production capabilities to meet future needs.

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