Analysis on the dilemma of tire industry in 2011

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Analysis of the plight of the tire industry in 2011

in the past six months, the continuous and rapid rise in the price of natural rubber has made China's tire industry usher in a more difficult year. Industry analysts pointed out that at present, domestic tire enterprises are actually facing a double test, one is the rapidly rising raw material prices, and the other is that they continue to lose market share in the United States. Two major factors will make tire enterprises face a more complex environment in 2011

double tests squeeze domestic tire enterprises

ZHENG Yongxiang, vice president of Shandong Rubber Industry Association, said: "from the current trend, the price of natural rubber will continue to rise in 2011. The industry estimates that there will be at least 10000 yuan. If the daily average output of each equipment can be increased to 10 kg (22 pounds) of welded steel pipe gb/t3091 ⑵ 001 for low-pressure fluid transmission." Increase of. This is a very serious situation for most tire manufacturers. "

according to Zheng Yongxiang, tire production enterprises in some provinces, including Shandong Province, have suffered large losses. "Some enterprises are in a difficult position to maintain their operations due to high costs, and the frequent rise in rubber prices has also led some enterprises to dare not take orders."

in September 2009, the US government decided to impose ad valorem special tariffs of 35%, 30% and 25% respectively on Chinese tires exported to the United States in the next three years

on December 13, 2010, the WTO dispute panel did not rule that the special safeguard measures taken by the United States against Chinese tires exported to the United States violated WTO rules

in this regard, Zheng Yongxiang believes that it has been more than one year since the special tariff was implemented in the special tire protection case, and the substantive impact on domestic tire enterprises has been formed. China's tire enterprises were blocked from exporting to the United States, losing nearly 40% of the overseas market at that time

excessive tire production capacity leads to fierce competition

the trouble entangled in tire enterprises is not only the market loss caused by the U.S. tire warranty case, but also the rising cost caused by the rising price of natural rubber. In recent years, the rapid expansion of production capacity in the domestic tire industry has plunged more and more enterprises into fierce competition

at present, Shandong has 4 rubber processing enterprises, Jinan experimental machine factory, more than 000 honest manufacturers, and the rubber consumption exceeds half of the country. Among them, there are more than 500 automobile tire manufacturers with the largest consumption of natural rubber, and the output has been the first in the country since 1985, accounting for nearly 50% of the total output of the country

since natural rubber began to rise in 2009, many new tire production enterprises have been added in Shandong Province, resulting in an excessive number of tire projects. Some who originally produced other rubber products, even rubber derived chemical products, have also turned to tire production. In addition, some enterprises other than natural rubber are also entering the field of tire production

Zheng Yongxiang said that the tire output of Shandong Province has maintained a growth rate of 30%, which has far exceeded the growth rate of market demand. Due to the decline of the overall profit margin of the tire industry, the overseas market has been further narrowed by the trade barriers of importing countries, resulting in more intense competition in the domestic market

this increasingly fierce competition situation has not attracted enough attention from tire enterprises. The person in charge of a tire enterprise in Guangrao County, Shandong Province said, "it can't be said that any enterprise has embarked on a larger project, which has plunged other enterprises into fierce competition. The fact is that whoever has sufficient financial strength and technology can seize more markets."

it is urgent to alleviate the demand for raw materials

since 2010, it has been mainly used in some manufacturing, metallurgy and building materials industries. Due to the drought weather in Yunnan and other major producing provinces, as well as the delay of tapping period in Thailand, India and other major foreign producing areas due to rainy weather, the production of natural rubber has decreased compared with previous years, and the price of natural rubber has risen rapidly

Xing Zheng, a natural rubber analyst, said that the reduction in production and the rise in prices of natural rubber had led some domestic traders to feel that there was an opportunity to take advantage of it and began to pour into the natural rubber market. "Hot money, including those from Jiangsu and Zhejiang provinces, is expected to continue to increase the demand for natural rubber this year. A large amount of money poured into the natural rubber futures market, driving up the price and driving up the spot market price."

some experts and insiders believe that the domestic rubber production is not high. In order to protect the domestic natural rubber planting base, China has raised import tariffs by 20% after joining the WTO, which has formed an unequal competition between China's tire processing and its foreign counterparts. The industry suggests that the import tariff of natural rubber should be gradually reduced to protect the interests of domestic tire manufacturers. At the same time, relevant incentive policies were introduced to expand the production of synthetic rubber

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