The economic operation of China’s tire industry has shown obvious signs of bottom up and recovery.
According to the statistics released by China Rubber Industry Association concerning the economic indicators of the 41 major tire producers it monitored, as of Sept., both the tire output and sales showed positive growth, for the first time since 2014.
The tire producers’ inventories dropped sharply, and their profits showed yearly growths. However, the volume and value of their export deliveries decrease due to the anti-dumping and anti-subsidy measures taken by the U.S. against tires from China.
But in spite of fewer exports, other indicators turning better proved the growing momentum of China’s tire industry.
As of end-Sept., the 41 major tire producers in China produced 275 million tires, up 5.58% year on year, in which the output of radial tires rose 6.99%.
Most of the tire producers’ outputs have increased; among the top 10 tire producers by output, only three of their outputs decreased from the same period of last year.
By the end of Sept., those producers’ tire sales incomes totaled 110.2 billion yuan, slightly climbed 0.05%. But the growth was gained under the circumstances of sharp tire price and export decline, and it was the first positive sales revenue growth of China’s tire industry in the past three years.
In addition, the value of the inventories dropped 14.8% to 14.38 billion yuan; the volume of the export delivery declined 1.72% to 118 million tires; and the value of the export delivery dropped 7.99% to 38.41 billion yuan.
With respect to the capacity utilization of the entire industry, that of the all-steel tires was about 70% and that of the semi-steel tires was 73%.
