New inflated rubber tires exported from Qingdao port, Shandong province, lessened 12.9% year on year in May; the export value declined 1.1% to 4.95 billion yuan; but the average export price grew 13.6% to 250.1 yuan/tire, according to Qingdao Customs.
In the first five months of this year, Shandong exported 93.74 million tires, down 6.9%; the export value rose 16.4% to 22.43 billion yuan; and the average export price was 239.3 yuan/tire.
1.Features of tire exports from Shandong port
(1)Export volume declines, average price keeps rising in May
Tire exports in Shandong province rebounded across the board since 2016, except in Feb.. But the export volume declined in May and lessened 8.6% from Apr.
Starting from Feb., the average export price soared considerably and climbed 0.3% in May from Apr., hitting a record high since Oct. 2015.
(2)Export in terms of processing trade takes nearly 80%
Shandong port exported 15.6 million tires in May in terms of processing trade, down 14.6% year on year, accounting for 78.8% of total tire exports from Shandong. At the same time, 4.04 million tires were exported in terms of general trade, down 6.2%, accounting for 20.4% of total tire exports.
(3)Private exporters the main force
Private companies exported 14.57 million tires from Shandong port in May, down 16% and accounting for 73.6% of total tire exports; foreign-invested firms exported 3.46 million tires, up 9.6%; and state-owned enterprises exported 1.77 million tires, down 20.7%.
(4)EU, U.S., Brazil, Nigeria, Saudi Arabia major export destinations
Shandong port exported 4.65 million tires to EU in May, down 5.1%; the exports to the U.S. were 1.84 million, down 30.9%; and to Brazil, 1.29 million, up 36.6%.
In addition, Shandong exported 1.15 million tires to Nigeria, down 2.8%; and the exports to Saudi Arabia were 1.01 million, down 11%.
In the reporting month, Shandong’s tire exports to the five markets accounted for 50.2% of the province’s total tire exports.
(5)Motorized passenger car tire exports take over 50%
Shandong port exported 10.89 million motorized passenger car tires in May, down 13.1% and accounting for 55% of its total tire exports; the exports of bus and truck tires totaled 4.59 million, down 22.2% and accounting for 23.1%.
2.Key factors for rising tire price
Analysis shows that rising raw materials prices and growing tire manufacturing costs have pushed up China’s tire export prices.
Moreover, tire producers’ pressure for environmental protection, increasing labor costs, greater inputs in green products and intelligent manufacturing also prop up higher tire export prices.
Although natural rubber price has plunged lately, tire export price is still in the ascending space as the impact of raw material inventory cycle on tire costs lags behind.
