China

China’s car manufacturers produced 2.58 million units during March for a 27.2% increase over February and a 15.3% gain over the same month last year, according to the China Association of Automobile Manufacturers (CAAM).

China Passenger Car Association data reveal that 4.33 million units were sold during the first quarter of 2023 for a year-on-year drop of 13.4%. Many believe the market softness is mainly the result of an end to local government incentives. To boost sales, Tesla, Toyota, Nissan and Volkswagen have been leading more than 40 brands in aggressive discounting of prices over recent weeks. Meanwhile, CAAM has indicated that China’s electric vehicle sales in March increased by 34.8% year on year to 653,000 units.

Decarbonization targets are for China to reach its peak carbon emissions by 2030 and to achieve carbon neutrality by 2060. Shanxi, a major steel producing and coal mining region, is making efforts to upgrade steel industry technology and thus reduce carbon emissions so as to become a leader in “green” steel.

Experienced Chinese scrap processors are continuing to build facilities in South East Asia, with end product being sold worldwide as well as to many of China’s traditional consumers. A new scrap trading and processing methodology is being formed outside China.