Surge in Auto Exports Drives Demand for Car Carriers, Pushing High-End Shipbuilding Steel Orders to 2028

In recent years, China's rapid growth in automobile exports has driven up demand for car carriers. These vessels require high-precision steel products, particularly ultra-thin plates, to control the center of gravity and ensure navigational stability. A steelmaker based in Nanjing expects its annual output of shipbuilding steel to exceed 2 million tons this year, including crack-arrest steel, wide and thin plates for cruise ships, high-strength ship plates, and polar low-temperature-resistant ship plates. The company currently holds long-term orders scheduled for production through 2028. Bolstered by strong downstream demand, the average market price for shipbuilding plates has risen from RMB 4,100 to approximately RMB 4,300 per ton. To mitigate raw material price volatility, shipbuilders commonly adopt fixed-price procurement models. Despite the high volume and added value of premium-grade steel products, profit margins remain attractive. In recent years, domestic steel producers have developed a range of specialized steels that meet internationally leading standards in stability, uniformity, and thickness tolerance, supporting the transformation and upgrading of China’s shipbuilding industry.