In a sense, cars are deformed steel because 85% of the raw materials in the car are steel.
Since the beginning of the year, the price of steel has experienced two twists and turns, rise-fall-rise, and one of the reasons for the large changes in steel prices is because of cars, because cars are growing rapidly because almost all people are optimistic about cars, so they make cars. Steel plates rose to high levels in early April this year.
This situation changed in late April because the country’s macro-control, the reversal of steel prices, fell rapidly. At the same time, the price of cars also began to soar. The industry therefore linked two things.
In fact, the relationship is not big. The reason why the country tightens its credit is that the overall development of the steel industry is overheated, and the price of automobiles is diving. On the one hand, because the country tightens car loans, the other main reason is that the production capacity does show signs of surplus.
In fact, the most painful is the auto parts companies. They are sandwiched between them. The contracts with auto companies were signed at the beginning of the year. The prices of parts and components cannot be changed within a year. The price of steel directly affects their production costs. It will take one year for the automotive terminal market to be affected.
However, after the price of steel has fallen, it has steadily risen. Between lifts, it is clearly a gradual return of value...
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