Secondary steel market materials are beginning to be used to make cars.

The head of technical services support in a certain domestic automotive industry, Liu Li, told reporters that a month ago, a car factory came to consult about a failure problem. The car manufacturer claimed that the problem was discovered during the production welding process, where some of the hot-formed parts had already cracked. These materials were purchased by the component factory, made into parts, and then delivered to the vehicle factory for welding assembly. When delivering the components, the quality assurance certificate for the materials used would be sent to the vehicle factory along with the components. However, when Liu Li and the car factory together went back to review the quality assurance certificates of these parts, they discovered that the steel materials were purchased from the secondary market. Generally, the steel mill would sell products with slight defects in the secondary market at a discount of 60-80% compared to entering the mainstream supply channels. However, many of the steel materials in the secondary market are not suitable for manufacturing cars, and if you do not carefully check each quality assurance certificate, you cannot ensure the true source of the steel materials. The sales director of a component company also revealed that automotive OEMs have centralized procurement planning, specifying which steel materials to purchase from which component factory, and how to purchase, ignoring the OEMs. "The reason for this situation is that in a transparent profit background, all factories are looking for ways to squeeze profit from the upstream and downstream."