Automotive sheet capacity continues to expand, supply-demand imbalance intensifies, putting industry profits under pressure

According to SMM statistics, China's automotive sheet production in 2024 totalled approximately 492,000 tonnes, an increase of about 8,000 tonnes compared to 2023. The growth rate continued to slow but remained positive.

By year-end 2024, there were eight domestic companies with stable automotive sheet production capabilities, with a combined annual capacity of approximately 1 million tonnes. However, nearly 300,000 tonnes of automotive sheet capacity was still under preparation or commissioning. Currently, the domestic market primarily uses automotive sheets for the four doors and two hoods of vehicles, including 5182 and 5754 automotive inner panels, as well as 6014 and 6016 automotive outer panels.

The processing fee ranges were 8,000-12,000 (excluding tax) and 10,000-14,000 (excluding tax), respectively. Due to the high degree of customisation, processing fee quotation ranges varied among automotive sheet producers. Key factors influencing processing fees included the brand positioning of downstream customers (i.e., automakers), the performance requirements of the automotive sheet products themselves, and order volumes. 

Compared to 2023, automotive sheet production in 2024 still fell short of expectations, primarily due to a sluggish automotive sheet market during the year, with multiple automakers reducing procurement volumes. In 2025, no significant improvement signals are expected on the demand side. However, 100,000-200,000 tonnes of capacity is expected to be completed and put into operation, with the supply-demand relationship continuing to trend toward oversupply. The profit margins of the entire industry are likely to face further compression.