China's tire exports are facing a severe test

The China Rubber Industry Association recently held the 2011 Standing Council Meeting and the 12th National Rubber Industry Information Conference in Nanchang. Deng Yaxi, executive vice president and secretary-general of the China Rubber Association, said in his speech that protectionist sentiment in foreign trade has spread and Chinese tire exports will face more severe tests. Regarding the development trend of the rubber industry, Deng Yalu expects that the rubber industry in China will maintain a low growth rate since the beginning of this year in the fourth quarter.

Export situation is not optimistic

At the meeting of the Standing Committee of the China Rubber Industry Association in 2011 held on November 8, Deng Yaxi informed the Standing Council about the meeting of the China Rubber Association Bureau held in Guizhou at the end of October. Deng Yalu said that the current development of the world economic situation is uncertain and the situation facing the industry is not optimistic. Foreign trade protectionism has spread, and China’s tire exports will face more severe tests.

Deng Yaxi said that China has entered the era of high costs, and the current situation facing enterprises will be "three wastes and two highs," namely, people shortages, money shortages, electricity shortages, high costs, and high taxes. The meeting of the Bureau of the Association proposed that we must speed up technological innovation, strengthen enterprise management, improve product quality, accelerate industrial integration and upgrading, change the path of taking the low cost in the past, and guide enterprises to take a high-quality, high-cost road. The whole industry must improve its own technical level and quality level; enterprises should regard improving product quality as an important task.

Industry analysts believe that although the “special security case” in the United States has been settled, the tire industry’s exports may also face greater pressure. The news released by the China Rubber Industry Association to the outside world shows that China’s tire exports will be further hit by foreign trade protection, and the low-cost road has indeed come to an end.

Stayed low in the fourth quarter

At the 12th National Rubber Industry Information Conference held on November 9th, Deng Yaxi made a report on “Analysis and Prospect of 2011 Rubber Industry Operation”. In summing up the performance of member companies in the first three quarters of the year, Deng Yaxi said that although the growth rate of the major economic indicators of the industry has dropped significantly since the beginning of the year, it is still running in a box and there have been no ups and downs.

Deng Yaxi stated that the radial middling rate of member companies reached 86.76%, an increase of 2.8 percentage points year-on-year; the production of bias tires decreased by 22% year-on-year, and the absolute amount decreased by about 6 million; the tire export delivery value increased by more than 50 deliveries. The percentage point indicates that China's export tires have greater optimization and improvement in terms of variety structure and price.

Regarding the development trend of the rubber industry this year, Deng Yalu believes that at present there are many uncertainties in the international environment, the international trade frictions are further aggravated, and China’s automobile production and sales continue to grow at a low rate. Therefore, in the fourth quarter, China’s rubber industry will maintain its low level since the beginning of the year. With the growth trend, it is expected that the annual increase in tire production will be around 5%, and the increase in tape production will be around 10%. Due to the instability of the world economic recovery and increased uncertainty, industry exports will continue to experience volatility.

Li Yongwu, president of the China Petroleum and Chemical Industry Federation, also stated that although China’s current size and output of some companies have ranked among the top in the world, it has not yet formed an international company with influence, authority, and the right to speak. At the low end of the brand and value chain, the vast majority of companies are still playing the role of “world manufacturing factory”. Excessive structural capacity, low industrial concentration, weak basic research, serious product homogeneity, relatively backward management, and brand building need to be strengthened are all problems that the rubber industry urgently needs to solve during the “12th Five-Year Plan” period.

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Category item

Carbon content

Chlorine content

Tensile strength

Compression ratio

Rebound rate

Ash

TG

Thickness deviation

Density deviation

Remarks

S Content≤800-500PPM

≥99.3%

≤40PPM

≥4.0Mpa

35 ~ 55%

≥10

≤1%

450℃≤1%

±0.03mm

±0.03g/m3

(Nuclear industry level)

600℃≤20%

S Content≤500- 200PPM

≥99.4%

≤30PPM

≥4.5Mpa

35 ~ 55%

≥11

≤1%

450℃≤1%

±0.03mm

±0.03g/m3

(Nuclear industry level)

600℃≤15%

S Content≤200PPM

≥99.5%

≤20PPM

≥5.0Mpa

35 ~ 55%

≥12

≤1%

450℃≤1%

±0.03mm

±0.03g/m3

(Nuclear industry level)


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