Analysis of China's Tire Export Market in 2011

"Internal and external problems", the tire industry is facing a test

Since the United States launched the special tyre protection project for tires and anti-dumping of construction tires in 2009, many countries have followed suit and countries such as India, Argentina, and Brazil have filed or attempted to launch special safeguards and anti-dumping cases against Chinese products. Cai Weimin, secretary-general of the China Rubber Industry Association’s tire division, pointed out: “After implementing the special safeguard measures, China’s export of American passenger tires fell by 23.6% in 2010 compared to 2009, and dropped by 6% in the first half of 2011. The United States imports from third countries. The number of tires increased by 20.2% in 2010 compared with 2009 and 9% in the first half of 2011. These numbers are enough to show that the previous Chinese tires exported to the United States did not threaten U.S.-related companies."

According to relevant data from TexInfo, China's tire industry has already taken 16 anti-dumping, countervailing and special safeguard investigations from 8 countries in the past 7 years. At the meeting of the Standing Committee of the China Rubber Industry Association in 2011 held on November 8, Deng Yalu said that the current development of the world economy is uncertain, and the industry is facing an optimistic situation. Foreign trade protectionism has spread, and China’s tire exports will face more severe tests.

Compared with the economic situation abroad, the domestic situation also makes tire companies difficult. In an interview with Teyi Information, the head of Jiangxi Taiming and Nantong Jinlei, the company said that due to the “three shortages and two highs,” the domestic rubber tire companies generally have a high cost. Although industrial upgrading and technological innovation are already in progress, for SMEs, the internal and external problems still leave this traditional export industry to be tested.

Changes in demand areas, exports are still rising

According to statistics from Special Data, China's tire industry still has the largest export destination in North America, but demand growth has begun to shift to other regions in Europe and Central and South America (see below). In the January-August 2011 global automotive market statistics, European and Central and South American regions saw a significant increase in car sales (Germany’s auto sales increased by 18.3% in August, France and Spain also rose faster, and Brazil’s cars Although sales have declined in August, total sales have increased by 4.9% year-on-year. This direct factor has led to a large demand for tires.

Although there have been some changes in the export destination, from the export value point of view, the tire exports from January to September 2011 still maintained a good upward trend (as shown below).

According to data from the average export prices of automobile tires for January-September 2011, the average price of automobile tires in the period from January to September 2011 is on an upward trend, and the average export prices from July to September remain stable. Compared with the same period in 2010, the average export prices in January-September of 2011 all increased year-on-year, and the monthly growth rate and the average export price trend are basically the same. The first five months showed a growth trend from May to September. The year-on-year growth rate remained basically stable.

Tec analysts said that due to the rapid development of China's automobile industry in recent years, it has driven the development of the tire industry, and production and sales have greatly improved. Compared with foreign price advantages, it also promotes strong exports, so China's tire exports The market is more optimistic. However, most of China's tires are OEM-made, and there are few well-known domestic brands. They are not conducive to the development of the industry in the long-term interest, and gradually carry out technological upgrading, product innovation, and brand strategy in order to meet various challenges in the international market.

Strict risk control, the industry is still strong

Exports continue to rise, but the profitability of tires continues to decline. With the continuous increase in demand, the import demand for natural rubber continues to increase, while the prices continue to rise. Although there are certain fluctuations in the growth trend in 2011, the average import price in each month has increased year-on-year.

Special Information analysts also pointed out that although the tire industry's gross margin has been repeatedly squeezed by different channels, while trade frictions continue to increase, but due to the support of international market demand, from the perspective of exports, the tire industry can still be in a period of time Maintain relative growth within.