The Development of steel wheels under the influence of covid-19

Steel wheels are more cost-effective

From 2018 to 2019, due to the downturn in the automobile industry, the output of wheel hubs continued to decline. At the same time, the Sino-US trade dispute also suppressed the output of wheel hubs. In 2020, due to the impact of the new covid-19, the operating rate has declined, continuing the downward trend in wheel production, reaching 222 million, the lowest year-on-year rate in six years.

At present, automobile wheels are mainly divided into steel wheels and aluminum alloy wheels. Compared with aluminum alloy wheels, steel wheels have the advantages of strong impact resistance, low price and high cost performance, but their aesthetics are lower and their weight is heavier and higher, so they are mainly used for economical passenger cars and commercial vehicles.

Supply: Affected by the epidemic, production has further decreased

From the perspective of the output structure of different sub-products, because the wheels used in commercial vehicles and economical passenger cars in my country are still mainly steel wheels, aluminum wheels are mainly used in high-end passenger cars. Therefore, my country's wheel hub production is still dominated by steel wheels. In 2020, my country's steel wheels will account for more than 70%.

Looking at my country's Steel Wheel production in detail, my country's steel wheel production is close to 60% of the global steel wheel production. However, due to the passenger car market in recent years, the steel wheel market has been continuously squeezed by aluminum wheels, as well as the new crown epidemic and the automotive industry. Due to factors such as the cycle, the domestic steel wheel output is on a downward trend. In 2020, the domestic steel wheel output will reach 61 million, a year-on-year decrease of 10.29%.