Baoshan Iron and Steel Co Ltd, the listed arm of China's biggest steelmaker, sold nearly one million tons of auto-grade steel in the first half of this year, 60 percent of its sales of the product for the whole of last year.
Analysts said the growing sales will help the firm secure its position as China's biggest auto-grade steelmaker, with more than half the market share.
The Shanghai-listed steelmaker said it made 971,700 tons of auto-grade steel in the six months to June.
Baoshan Iron and Steel, the public arm of Shanghai Baosteel Group Corp, sold 1.55 million tons of the product last year.
"The profit margin for auto-used steel sheet is relatively higher compared with other steel products," said Sun Zhaohui, an Industrial Securities Co Ltd analyst.
"That's why growing auto-grade steel sales can translate into booming profits for the steelmaker."
Investors are awaiting Baoshan Iron and Steel's first-half earnings report, which is scheduled to be published next Thursday.
"Baoshan Iron and Steel is leading the country's handful of steelmakers that are qualified to produce high-technology auto-grade steel sheet," Sun said.
 Before 2000, about half of the country's demand for steel sheet used for auto manufacturing was met by imports, he said.