The effect of steel price on automobile distribution

The impact of steel price on auto parts suppliers is bound to be greater than that of car companies. Due to the gross profit margin on these parts supplier itself is lower than the car companies, and most of the cost of these suppliers from raw materials, steel, therefore, suppliers will be passive components increased price. Since the main types of steel used in automobile manufacturing are hot-rolled coil, cold rolled coil and medium thickness plate, it is very important to pay attention to the price trend of such steel varieties. From the international steel price point of view, China's raw material price has certain competitive advantage. The global economy is starting to pick up, but international steel prices are not rebounding as the economy recovers, so international steel prices will not rise sharply in a short period of time. From the auto industry as a whole, the world in addition to the European market, the United States, two of China's largest car market sales have been rising, and the industry is currently in recovery phase, therefore, even if steel prices rose in the future, also won't have too much impact on automobile industry in the short term. And judging from the industry cycle of steel, it is less likely to enter a bull market of the rally, so the steel price will have limited influence on the automobile enterprises in the future.