The price war offsets the favorable effect of the tire industry

Recently, the tire branch of the China Rubber Industry Association released data on the economic operation of the tire industry in the first half of 2014.

Statistics show that from January to June this year, 47 member companies of China Rubber Association achieved a total output value of 102.962 billion yuan, a year-on-year decrease of 0.13%; sales revenue was 974.14 billion yuan, a year-on-year decrease of 3.52%; and export delivery value was 34.43 billion yuan, a year-on-year decrease of 1.20. %; achieved profit growth of 5.27%, achieving a 3.22% reduction in profits and taxes.

"Double Opposition" Increases Industry Pressure

It is understood that in the first half of the year, the tire industry showed the following characteristics.

Yield increase unabated

Driven by the economic recovery in Europe and the United States and the development of the domestic automobile industry, the output of the tire industry continued to grow. Correspondingly, the consumption of natural rubber, synthetic rubber and other raw materials has increased in varying degrees, and the number of employees has also increased. However, the sales volume of tire products decreased by 6.52% year-on-year, and the growth rate of the industry slowed down.

The price war trend is obvious

In the recent period, the prices of natural rubber and other raw materials have fallen, which has brought about positive development for the industry. However, for enterprises, the profit growth trend obtained is not obvious, and the price war between enterprises basically offsets the favorable effect of the industry.

Reliance on the export market remains high

According to the statistics of the China Rubber Association, domestic tire exports accounted for 43.3% of total output, of which radial tire exports accounted for 44.29% of its output, slanted tire exports accounted for 35.11% of its output, and export delivery value accounted for 35.34% of total sales. .

"Double Anti-" Increases Pressure on the Industry

On June 3, the U.S. Steel Industry Federation launched a “double counter” survey on passenger tires exported to China. Because the Chinese tire industry is highly dependent on the export market, especially the US market, if the "double reverse" is successful, it is very likely to establish a benchmark effect in the world, which will seriously affect the domestic tire industry.

Enterprises accelerate the internationalization of the layout

The person in charge of the China Rubber Association’s tire branch told reporters that in the first half of the year, the overall economy of the tire industry was stable, although the basic raw material prices such as rubber fell, but labor, energy, environmental protection, capital, logistics and other costs have increased, the development of the industry is limited .

In order to cope with the above situation, domestic tire companies are accelerating their internationalization. Some large tire companies are also actively seeking partners around the world to establish multinational companies and factories to promote the diversification of raw material supply and market sales.

At the same time, in the face of domestic environmental protection pressures and international trade barriers, Chinese tire companies have gradually paid attention to and accelerated the industrialization of domestic green tires, and strive to adjust the industrial structure and increase the added value of products. On March 1st, the China Rubber Industry Association officially issued the "Technical Code for Green Tires", marking the beginning of the research on China's green tire labeling system.

In the first half of the year, tire companies and industry experts also carried out preparations for the study of development strategies for China's rubber industrial powers, further clarifying the gap between China's tire industry and the world's advanced level, and reached a consensus on advancing the strategy for strengthening tires.