The tire industry has had a hard time this year

The United States Congress passed the 1930 tariff law amendment, the European debt crisis is difficult to spread, and the EU labeling law will be formally implemented in November this year, China's tire export situation has become increasingly severe. At the same time, the overall economic growth in the country has slowed down, and the domestic market for tires has been pretty much the same as last year. In addition, the prices of major raw materials such as natural rubber continue to oscillate at a high level, and it is very difficult to improve the profitability of the tire industry this year. At the 2012 China Rubber Annual Conference that ended last week, the CEOs of the companies interviewed by the reporter and the person in charge of the relevant association gave the same judgment.

The situation in the export market is grim. “The debt crisis in Europe and the world economy will go from here. It is the biggest variable in China’s tire exports. It not only affects China’s tire exports to Europe, but also affects exports to other countries. The international trade protectionism caused by the economic downturn has risen. The export pressure of the rubber industry will double this year, from 30% last year to about 20%, mainly due to poor tire export prospects.” Executive Vice President, China Rubber Industry Association, Secretary-General Deng Yayi said.

“In the past, the United States could not mention 'double opposition' to non-market economy countries. However, after the adoption of the 1930 tariff law amendment, 'double reverse' has a legal basis.” General Manager of China National Chemical Rubber Corporation, chairman of Fengshen Tire Co., Ltd. Cao Chaoyang told reporters: “In December last year, the United States Federal Circuit Court of Appeals ruled that the U.S. Department of Commerce’s “double opposition” to Chinese engineering tires is illegal, and it is precisely because there is no subsidy issue in non-market economy countries. However, the United States can now proceed unconditionally. Anti-”. The initial ruling of China’s PV industry on March 20 is an example. The United States has been the largest market for tire exports in China before 2011. If the US tax law’s amendment is passed again, we will passive."

“An increasing number of countries are brewing or have implemented the tire labeling method, but due to the lack of relevant standards, testing methods and technical specifications in our country, a considerable number of enterprise products are still not up to the standard. The EU is the largest export area for tires in China, although In November, the labeling law took effect, but tires produced after the 30th of this year on the 6th will have to be labeled if they want to enter Europe. This is a big challenge for China's tire companies.” Fan Rende, chief of the China Rubber Association, said.

The growth in the domestic market is limited. “In addition to the worrying export outlook, there is not much opportunity for domestic demand. Due to the slowdown in the growth rate of the domestic auto industry and the logistics industry, the tire industry with which it is supporting can be flat with last year.” Triangle The company’s party committee vice president Wei Nan said.

Cao Chaoyang told reporters that this year's domestic GDP growth rate has slowed to 7.5%, which means that the flow of goods is declining and the scale of valuation is declining, which means that the domestic tire market will definitely not grow as fast as in previous years. Moreover, at the time of the global financial crisis, the country introduced an investment plan of 4 trillion yuan. A large number of project constructions have increased the profitability of the tire industry. The market's boom has caused a large number of projects to be launched in a hurry. These production capacities are expected to be released in the next two years, which will increase the pressure on the domestic tire market.

The leading role of the automotive industry in the tire industry is also declining. According to Gu Xianghua, deputy secretary-general of the China Association of Automobile Manufacturers, China Automobile Association expects domestic auto sales to reach around 20 million vehicles this year, with an increase of about 8%, of which commercial vehicles will not grow or grow negatively. He personally believes that this year's auto production and sales growth may be only 5%.

Profitability has stood the test Deng Yaxi said that due to the lackluster growth of major economies and the rise of international trade protectionism, combined with overcapacity in domestic production, rising cost of production factors, tight corporate funding, and increased restrictions on energy and resource environment, the pressure on industry profit growth continues to increase. , Curbing the decline in profits will be the top priority for the whole year.

She said that high raw material prices have seriously affected the profits of the rubber industry in recent years. According to the statistics of the China Rubber Association, in 2011, the average corporate profit rate of the Association was 3.15%, of which the tire industry was only 2.54%, the profit decreased by 9.03% over the previous year, the loss amount increased by 100.12%, and the loss reached 14.66%, an increase of 4.69 percentage points. . This year, the China Rubber Association expects tire production to increase by 5.9%.

She predicts that the prices of major raw materials such as natural rubber will continue to fluctuate at a high level in 2012, and the profitability of enterprises will once again be severely tested.

How can a world come into being when the international and domestic economic situation becomes increasingly complex? Adjusting the product structure and market structure to improve the quality of economic operations is a common answer for participating enterprises.

“The domestic auto industry has not been able to grow as fast as the previous two years. Now that the domestic auto industry is shifting to the mid-to-high end, it will be no good for tire companies to open up the market and not establish a brand. It will not do without improving quality.” said Wei Nan. .

Cao Chaoyang said: “Emerging markets will bring great opportunities. Markets in Russia and other countries will have significantly faster growth than other countries and regions. Eastern European countries do not have the same debt crisis as Western European countries. Before the turbulent countries and regions have gradually begun to stabilize. Compared with developed countries, these countries have a relatively low market entry and a relatively short process, and they are the 'blue sea' areas for exports. Diversification of export areas is also a major focus of the adjustment of the tire industry."