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Top 10 news events of China's tire industry in 2012

Column:Industry information Time:2012-12-19
As 2012 draws to an end, with the joint efforts of all aspects, China's tire industry has withstood the pressure from both domestic and international sources and made remarkable achievements...

As 2012 draws to an end, with the joint efforts of all aspects, China's tire industry has withstood the pressure from both domestic and international sources and made remarkable achievements, but at the same time, some problems and shortcomings have also been highlighted. Tyreworld.com has reviewed the "top ten news events" of the domestic tire industry this year and recorded the drip process of the development of the industry.

Event 1: The U.S. tire "special warranty case" ended

The "special safeguard measures" for Chinese tires, which have been implemented by the United States for 3 years, officially ended on September 26 this year, and Chinese car and light truck tires, which had been worn for three years, were finally removed and allowed to enter the United States at a normal tariff of 4%. The United States is an important export market for Chinese tires, and this news is undoubtedly a major positive for Chinese tire export enterprises.

Event 2: The EU tyre labelling Law is officially implemented

On November 1, this year, the European Union tire "labeling law" formally implemented. All car, light truck, truck and bus tyres sold in the EU must be labelled with information on their fuel efficiency, rolling noise and wet-grip rating. Tyre products that do not meet the grade specified in this regulation or are not labelled shall not be sold in the European Union. This regulation, will bring great influence to Chinese tire export enterprise especially small and medium-sized enterprise.

Event 3: Tire raw material prices fell sharply

Since this year, natural rubber prices all the way "fall endlessly". The main reasons are the expansion of planting area in Southeast Asian gum producing countries, the beginning of rubber production of newly planted rubber trees, and low downstream demand. Glue producers such as Singapore, Malaysia and Indonesia have repeatedly introduced measures to boost prices, but the effect has not been significant. Industry insiders are expected to global natural rubber prices next year or remain stuck.

Event 4: Chinese tires are anti-dumping by emerging countries

Vietnam, Colombia, India, Argentina, Egypt, Brazil... Since the United States implemented the "special protection case" against Chinese tires, many emerging countries also began to target the high-speed growth of the Chinese tire industry, at that time, anti-dumping, anti-subsidy and other trade incidents emerge in endlessly. This has also become a catalyst for domestic tire enterprises to develop overseas export markets and seek overseas factories.

Event five: tire enterprise market is not good benefit

In China's tire market growth seriously declined, the first 10 months only increased 2% under the background, the backbone tire enterprise's benefit growth rate has reached more than 30%; In the stock market a lament, tire listed companies operating income, profit also red. According to the analysis, the driving force of tire enterprise benefit growth mainly comes from two aspects: one is the rapid development of radial tire and high-end tire market; Second, the major raw material prices fell sharply.

Event Six: China's largest tire test field opened

On November 16, Kunshan Magis Tire testing facility in Jiangsu Province was officially opened. The test facility is the largest tire test facility in China, covering a total area of 860,000 square meters. It took Zhengxin Rubber Company more than three years and invested $150 million to build it. It is understood that, at present, many well-known automobile manufacturing enterprises and the testing field reached a cooperation agreement.

Event 7: Tires are being recalled for the first time

Legislative Affairs Office of The State Council issued the Regulations on the Recall of Defective Automobile Products (Draft) in February this year. The regulation was adopted at the 219th executive meeting of The State Council on Oct 10 and announced to be put into effect on Jan 1, 2013. The regulations stipulate: "If there is a defect in the tires that are equipped with automobile products when they leave the factory, the manufacturer of the automobile products shall be responsible for recalling them; If there is a defect in the tyre that is not equipped with the vehicle, the manufacturer of the tyre shall be responsible for the recall." This is the first time that the domestic tire was included in the car recall, is expected to improve the car tire after sale "three do not care" chaotic situation.

Event 8: "Green tire" standard development work started

The China Rubber Industry Association is working on a self-regulatory standard for Green tires, which is expected to be completed by the end of this year, and aims to have the conditions for the start of "non-mandatory classification of green tires" by the end of 2013. The standard is in order to deal with the European Union tire "labeling law" and other "green barriers" formulated, the purpose is to from the raw materials, technology and product standards, comprehensive promotion of China's "green tire" industrialization development, and strive to achieve "green tire" industrialization at the end of the "12th Five-Year plan". The specific targets of the standard are: about 50% of radial tire manufacturers have the ability to produce "green tires", and 25% of enterprises have more "green tires" than ordinary radial tire production.

Event 9: The Ministry of Industry and Information Technology set the tire reuse industry "threshold"

Miit in August the tyre retreading industry access conditions and the comprehensive utilization of waste tyre industry access conditions, the purpose is to implement the "circular economy promotion law", we should standardize the order of the development of comprehensive utilization of waste tyre industry, promoting the optimization and upgrading of enterprises and to strengthen environmental protection, improve the comprehensive utilization of resources technology and management level, to guide the healthy sustainable development of industry. The two "conditions" become the entry "threshold" of tire retread and waste tire processing enterprises, which is conducive to the standard and orderly development of the industry.

Event 10: Local tire enterprises start overseas layout strategy

With the high international trade barriers, and the demand for low-cost raw materials, domestic tire companies began to layout overseas markets. According to statistics, by the end of August this year, Sailun shares, Hangzhou ZhongCE, Shandong Ogorui and other enterprises, have been in Southeast Asia and other places to build tire factories. In addition, Triangle tire and other enterprises will also extend "tentacles" to the Russian market. Overseas market layout, marking the domestic tire enterprises began to actively respond to international trade barriers, and actively expand new markets.

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