China’s struggling auto sector is likely to take a further hit from the effects of the coronavirus outbreak given that Wuhan is the country’s major auto production hub. But overcapacity in China’s auto sector remains the biggest drag on any sustained recovery, particularly as consumption of cars has almost reached saturation point. China’s auto sector accounts for around 6% of the country’s total steel consumption, S&P Global Platts estimates. The China Iron & Steel Association has forecast that China’s total steel consumption will grow by 2% this year to just under 890 million mt. The association has predicted that China’s passenger car production and sales will decline by 2% this year, which would mark the third consecutive year of decline in the sector. China’s vehicle output and sales reached 25.721 million and 25.769 million units […]