The Chinese government announced that they will change their policy on the manufacture of small vehicles in March this year. With the change in the policy, more small vehicles are expected to be manufactured. This will increase the demand for auto steel as well. With increased demand for small vehicles, producers like Jeely Holding Group will benefit. Auto steel accounts for 50 percent of China’s total steel consumption. The total production volume for steel used in vehicle manufacture was 10 million tons in 2005 and this is predicted to grow to 16 million tons in 2006. (Feb. 15)