Recently, at the 2018 China Rubber Annual Conference, the profitability of the Chinese tire industry has once again become the focus of corporate discussions.
Tire World Network learned from the latest data released that in 2017, the profits of the domestic tire industry were tragically “sweptâ€.
Tire profits fell sharply
According to statistics from China National Rubber Industry Association Tire Branch, in 2017, the total output of Chinese automobile tires was about 653 million, an increase of 7.05% year-on-year.
Among them, the production of radial tires was 613 million, an increase of 8.45% year-on-year; the number of biased tires was 40 million, a decrease of 11.11%; and the radialization rate was 93.8%.
In the production of radial tires, there were 131 million all-steel tires, an increase of 8.19% year-on-year, and 482 million semi-steel tires, an increase of 8.45%.
A tire industry veteran told Tire World Net that last year, the transformation of the domestic tire industry accelerated, and tire production, output value, exports, and sales revenue all showed steady growth.
However, it must be pointed out that the overall profit of the tire industry has dropped significantly.
The data shows that in 2017, the profit of China's tire industry dropped by as much as 49.56%.
According to Shi Yifeng, secretary-general of the Rubber Association of China Rubber Federation, apart from the ups and downs of raw material prices, there are more profound reasons for the decline in the profits of tire companies.
Many industries "difficulty" to be solved
According to reports, at present, there are several major problems in the development of the domestic tire industry.
First, there is no fundamental change in the contradiction of structural excess, stock adjustment is far from in place, and incremental is not enough optimization.
The second is that some companies have not hesitated to adopt low-price competition means to compete for the market, resulting in the industry falling into a vicious circle of low profits or even negative profits. These companies themselves also entered operational risks.
In addition, Chinese tire manufacturers also face a number of operational problems such as increasing trade frictions, tightening of banks’ bankrolls, and tightening environmental protection.
Some experts believe that in 2018, the reshuffle of the Chinese tire industry will continue. At the same time, as the auto market continues to grow, the Chinese tire market still has some room for rigid growth.
According to forecast, this year, domestic tire production will enter the stage of slight increase. The annual production of automobile tires is expected to be 676 million, an increase of 3.5% year-on-year.
The radial tire output is expected to be 636 million, an increase of 3.7% over the same period of last year. Among them, 133 million steel tires, an increase of 2%; semi-steel tires 503 million, an increase of 4.5%.
Shi Yifeng said that China's tire industry should shift from production growth to high-quality development, and insist on the development direction of quality first, efficiency first, and green environmental protection.
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