Market and product

In the November 8 meeting of the China Rubber Industry Association, 2011 General Council meeting, Deng Yali said that the current world economic situation of uncertainty, the situation facing the industry is not optimistic. The spread of protectionist sentiment in the foreign trade, China’s tire exports will face even more severe test.

The relative economic situation of foreign and domestic tire companies also made the situation difficult. Jiang Xi Taiming, Nantong Jin Lei person in charge of two of the Tesco business information interview, by the “three waste two high” limit, rubber tire companies domestic high cost of widespread embarrassment. Although during the industrial upgrading and technological innovation, but for SMEs, both internal and external situation, still make the traditional export industry fiasco.

Tesco Information Statistics found that Chinese tire industry exports to North America as the destination is still up, but demand growth began to convert to other parts of Europe and Central and South America (see below). The January-August 2011, the global auto market statistics, Europe and Central and South America have a lot of car sales growth (German car sales increase in August, up 18.3%, France, Spain also rose rapidly, while the Brazilian automotive While sales declined in August, but the total sales volume was up 4.9%), the direct factor leading to high demand for tires.

Although there are some export destinations changed, but the export value from the point of view, from January to September 2011 exports of tires, still maintained a good upward trend (see below)

Tesco Information tires from January to September 2011 the average export price data: January to June 2011 average export price tire upward trend in July to September, the average export price remained stable. Compared with 2010, 2011, the average export price of each month from January to September were up, and monthly year on year growth trend is basically the same trend with the average export price, the first five months showed a rising trend, beginning in May to September year on year growth rate remained stable.

Tesco Analysts said China’s auto industry in recent years, rapid development, led to the tire industry, production and sales have greatly improved, and the price advantage relative to foreign, but also promote the export of strong, so China’s tire exports market is more optimistic.However, China’s mostly OEM tires, less well-known domestic brands, from the long-term interests are not conducive to industrial development, gradual technological upgrading, product innovation, brand strategy, in order to cope with the challenges on the international market.

Exports are rising, but the tires still in the declining profit margins.With the increasing demand for natural rubber increased import demand, and prices are rising, although the growth trend in 2011 there are some fluctuations, but the monthly average price of all imports increased year on year.

Tesco IT analyst also pointed out that although the tire industry’s gross margins squeezed repeatedly by different channels, while increasing trade friction, but due to the support of the international market demand from the export side, the tire industry is still in a period of time to maintain the relative growth.