After remaining steel-dominated for longer than automotive sectors in Europe and the USA, China is seeing growing investment in automotive aluminium. Kobe Steel is hoping to gain from this by commissioning a new aluminium autosheet line next year, Kallanish notes.

The 100,000 tonnes/year line will produce 5,000 and 6,000 series aluminium sheets for car bodies in Tianjin and be completed in the first quarter of 2017. It is also planning to commission a US aluminium sheet plant the same year. Kobelco Automotive Aluminum Products China began issuing sample production in April this year to secure approvals from carmakers.

Increasing pressure to lightweight cars is helping aluminium win market share from steel in some automotive applications. Baosteel is also hoping to gain from this trend by negotiating a joint venture with Chinalco.

Kobe Steel currently is a major supplier of cold headed quality (CHQ) steel wire to Chinese carmakers and supplies steel autosheet through a joint venture with Anshan Iron and Steel.