Main economic indicators of some of China’s tire companies in the first seven months of this year have been released and the situation of China’s tire export exacerbated further.
Obvious Decline in Export Volume
Statistics show that in the first seven months, the 41 key members of the tire division of China Rubber Industry Association produced 211.72 million automobile tires, up 3.86% year on year.
The output of radial tires was 193.03 million, up 5.43%, including 49.43 million all-steel radial tires, up 3.36%.
With regard to the output, the operation of tire companies was good, but when we checked the exports, it was quite another story.
While the output maintained sound growth, in the first seven months, those producers delivered 90.68 million tires for export, down 1.43%. The delivery of radial tire exports was 84.86 million, down 0.89%.
In the same period of last year, impacted by the anti-dumping and anti-subsidy measures taken by the U.S. against semi-steel tires from China, the output and exports of tires in China both plunged.
Today, on the low basis of the last year, the exports continued sliding, which means China’s tire exports have exacerbated further.
Since the second half of this year, the impacts of the anti-dumping and anti-subsidy measures taken by the U.S. against truck and bus tires from China have been felt, both in export volume and export prices.
Greater Drop in Value of Export Delivery
A senior person in the export industry said that the quotations in China’s truck and bus tire export market have been confusing. Today’s quotation might be null by tomorrow, because someone offers lower price.
Sliding export price directly led to lower export value.
Statistics show that in the first seven months of this year, the 41 members completed tire export delivery value of 29.56 billion yuan, down 9.12%.
The volume of tire exports decreased less than 1.5%, while the money gained by producers dropped 9%.
China’s tire industry is dependent on foreign markets, more than 40% of the outputs are for export.
Therefore, decreasing value of export delivery greatly affected their business revenues.
In the first seven months, the producers’ output value of tire totaled 95.73 billion yuan, down 5.27%; and their sales incomes dropped 4.64% to 86.26 billion yuan.
The preliminary ruling about the U.S.’s anti-dumping and anti-subsidy probes against truck and bus tires from China has been released and the final ruling will be made at the end of this year.
So far, China’s industry association has helped the tire producers prepare for a plea for harmless.
According to the tax rate decided by the preliminary ruling, the price advantage of China’s truck and bus tires will vanish.
An industry insider said China’s export of truck and bus tires are highly dependent on the U.S. market, if the plea for harmless fails in the final ruling, China’s tire exports will suffer a heavy blow.
