The competitive advantage of China’s tire exports has diminished, which will definitely affect some producers’ existence.
A senior market insider of tire trading told Tire World on Aug. 30.
Emerge of Influences from US Anti-dumping, Anti-subsidy Probe
On Aug. 29, the US Department of Commerce declared it found that truck and bus tires imported from China were being dumped in the US market at margins ranging from 20.87% to 22.57%.
Before the preliminary determination, the US DoC had announced the preliminary situation for ant-dumping probe, saying the truck and bus tires from China were being dumped at margins ranging from 17.06% to 23.38%。
A person engages in foreign trade business in a tire exporter said under the tax rate of preliminary determination, the price advantage of China’s truck and tire tires in the US market will vanish completely.
The impacts of the US anti-dumping and anti-subsidy probe against truck and bus tires from China had emerged three months ago.
As the US determined that Chinese tire producers had raided on exporting tires and adopted restrained measures, the number of truck and bus tire exported from China to the US dropped sharply.
As the Europe sets up high technical barriers on tire imports, while the US market is on the contrary.
Therefore, the US has been a major export destination for China truck and bus tires.
Today, here comes the anti-dumping and anti-subsidy measures and the good days come to an end, said the insider.
The quotations in China’s truck and bus tire export market have been a mess.“Yesterday’s quotation could be useless by today, because someone would offer lower quotation.”
Waiting for the Final Ruling
The US DoC and International Trade Commission will announce the final rulings for the anti-subsidy probe in Nov. and Dec. this year and the final rulings for the anti-dumping probe in Jan. and Mar. 2017.
According to the attorney of the Chinese defendants, in the next, the US will examine the data provided by concerning Chinese producers and China’s industry association will continue the plea.
He said how the case will be determined is hard to tell and will be depend on the final votes.
With regard to the preliminary results, the US DoC will notify the customs to collect some margins on the basis of certain tax rates from concerning producers and exporters.
Aforesaid industry insider said as the margin will take up a large proportion of the tire producers’ capital, only a few large producers will be able to continue exporting to the US.
But she also expressed her concern as the high tax rate will weaken the competitiveness of the large producers’ goods.
A number of tire producers in China depend on tire exports. Today, the US market is shut down, they could face the winter.
Xu Wenying, deputy chairwoman and secretary general of China Rubber Industry Association, said the impacts from the US’s anti-dumping and anti-subsidy probe against truck and bus tires from China are much greater than those on passenger car and light-duty truck tires.
The sluggish domestic tire market last year was largely due to the decrease in tire exports. Inadequate capacity utilization of the entire industry also resulted from weak exports.
About one-billion-US-dollar worth of trade has been affected in this case if we calculate with truck and bus tire exports of 10 million to the US a year and 100 dollars per tire.
The US already imposed anti-dumping and anti-subsidy tariffs on passenger car and light-duty truck tires from China last year.
As a result, many Chinese tire producers had to quit the US market.
If the final ruling determines to impose anti-dumping and anti-subsidy tariffs on tires from China, all major tire categories from China will be refused by the US market.
