Statistics show that in Jun., China’s all-steel tire sales turned better, and the market prices are expected to stabilize.
Better sales
The sales in the tire market in Jun. turned better, about 65% distributors sold more goods in the month, the sales of 19% distributors didn’t change much, and 16% distributors sold fewer tires.
Tires of long-distance vehicles worn out faster under high temperature resulted in sales growth.
In addition, tire producers diversified promoting activities to attract secondary dealers and retailers to increase sales.
Samples of the investigation concentrated in south China in Jun., as south China entered into the rainy season, which affected transportation.
In general, sluggish demand in Jun. eased dealers’ expectation on price lifting, diversified promoting activities became the major way for them to increase or keep sales.
Smaller space for price reduction
The inventory in Jun. was also comparatively stable.
Inventory of primary dealers was stable but slightly climbed; that of secondary dealers kept the same as in May; and that of retailers grew a bit with the supports of roadshow and producers’ policy.
At the same time, non-mobile inventory continued declining.
Guo Juan, an analyst with Chem99.com, said in Jun., the market of all-steel tires was good but lacked of new growing momentum.
As raw material price fluctuated in lower level earlier, tire producers reduced prices to meet market expectation, but continuous price reduction didn’t encourage stocking, most dealers won’t restock until being out of supply.
But in Jun., raw material price rebounded, tire producers may take the chance to preserve profits, and most of them are unlikely to reduce price, but keep it.
Attachment: introduction of samples
The investigation has involved in 58 domestic primary and secondary tire dealers, including 44 primary dealers and 14 secondary dealers.
The areas being investigated have covered Shandong, east China (Jiangsu, Shanghai, Fujian, Anhui), northeast China (Liaoning, Jilin, Heilongjiang), north China (Shanxi, Hebei, Inner Mongolia), south China (Guangxi, Guangdong), and central China (Hunan, Henan).
