Key economic indicators of China’s tire industry declined across the board in 2015, according to China Rubber Industry Association.
Statistics show that among the 40 tire companies monitored by CRIA, 20% of them suffered losses in 2015, including six domestic companies and two foreigncompanies.
Although prices of raw materials, such as rubber, stayed low last year, but tire prices kept dropping, completed offset benefits generated from lower raw material prices, said Shi Yifeng, secretary chief of CRIA Tire Division.
Currently, China’s tire industry is of high inventory, high risks, high product similarity, and low prices, low profits and low capacity utilization.
In 2015, the value of China’s tire output and export delivery dropped 14.62% and 17.52%, respectively. While the sales revenue and profit decreased 15.37% and 22.22%, respectively.
The monthly capacity utilization of steel wheel manufacturers in 2015 was 65%, down 6% year on year; and that of semi-steel wheel manufacturers was 70%, down 10%. In some tire companies, the capacity utilization was even fewer.
In addition, six tire companies or plants closed down as a result of elimination of outdated capacity, higher environmental protection requests, and cash flow problems. While the tire programs of nine companies stopped construction due to cash flow, environmental protection, and land issues.
