Core Viewpoint - The China Iron and Steel Association emphasizes the urgent need for collaboration between the steel and automotive industries to combat "involution" and promote healthy development across the supply chain [1][2] Group 1: Industry Challenges - Automotive companies are pressuring steel suppliers to lower prices, significantly impacting the stable operations of steel enterprises [1] - In 2024, key automotive companies are expected to produce approximately 40 million tons of automotive steel plates, with cold automotive plates accounting for about 29 million tons [1] - Some automotive manufacturers have demanded price reductions exceeding 10% from steel suppliers, which is beyond what steel companies can accept [1] Group 2: Financial Pressures - The current market environment has led to automotive steel plates having virtually no profit margin for steel manufacturers, while automotive companies continue to request price cuts [1] - Certain automotive firms are delaying payments to steel suppliers, extending payment terms through financial instruments, thereby increasing financial pressure on steel companies [1] Group 3: Innovation and Competition - The procurement model for automotive steel plates undermines previous R&D investments and service systems, negatively affecting the motivation for steel suppliers to innovate [2] - The association views "involution" as a detrimental force that disrupts fair competition, distorts resource allocation, and hinders innovation and advancement in the value chain [2] - The automotive industry is urged to adhere to fair competition principles and focus on technological advancement as a core competitive advantage [2]
中国钢铁工业协会：车企“卷”价格严重冲击钢铁企业稳健经营