China’s commodity pricing platform SC199.com conducted an investigation over the sales volume of all-steel tires in July.
The targets were 38 first-tier tire distributors and 24 second-tier tire distributors.
Statistics show that in July, 67% distributors reported decline in all-steel tire sales volume, 26% reported stable sales, and only 7% distributors sold more tires.
Among those who reported sales decline, 37% of them reported sales decline within 20%; 24% of them reported sales decline between 20%-40%; and 6% reported sales decline of over 40%.
Analysts concluded a few reasons for the decline as follow:
First, heavy and continuous rainfall hit a greater part of China in July, which affected transport, in particular the country road in some places, the sales volume to end-users were severely impacted.
Secondly, environmental protection requests in Henan and other provinces increased, many producers reduced or cut tire output, and the actual sales volume of distributors dropped considerably.
Thirdly, the flood in southern China affected local logistics transport, and the transaction volume also decreased.
Fourthly, a few brands’ promoting activities took effect.
Finally, sales volume of mid- and low-tech tires saw greater decrement.
To sum up, the performance of China’s all-steel tire market was plain in July and the keynotes were flat and down.
Sluggish demand restrained distributors’ expectation for higher pricing, broad and diverse promoting activities became major approaches for them to boost sales.
