On January 12, 2015, the press conference on the economic operation of China's petroleum and chemical industry in 2015 was held in Beijing.
The relevant person in charge of the China Petroleum and Chemical Industry Federation reviewed the completion of the major economic indicators of the industry in 2015 and summarized four major issues affecting the development of the industry, including the tire industry in particular.
According to statistics from the Bureau of Statistics, in 2015, the main business revenue of the petroleum and chemical industry decreased by 5.5% year-on-year; total profit decreased by 19.5%, fixed asset investment decreased by 0.5%, and total import and export trade decreased by 21.5%.
According to the analysis, in 2015, the economic operation of China's oil and chemical industry has four major problems: overcapacity, high cost, tax burden, and weak investment, all of which are directly related to the tire industry.
At present, the overcapacity in the chemical industry is prominent. The overcapacity problem in tires and other industries is very serious. The imbalance between supply and demand in the market has caused prices to fall and fall again. The long-term, sluggish prices make companies unprofitable.
Since 2015, corporate labor costs, financing costs, logistics costs, environmental protection costs, and electricity costs have shown an upward trend. Although raw materials and other costs have decreased, they have not been sufficient to block the increase in total costs. In the context of a large decline in efficiency, business operations are under pressure.
Statistics show that in 2015, the total industry tax revenue increased by 5.0% year-on-year, which is in sharp contrast to the industry’s total revenue decline of 5.5% and profit margin of about 20%. The rapidly increasing tax burden has greatly affected the industry's reproducibility and competitiveness.
In addition, the growth rate of investment in fixed assets in the industry continued to fall, and the first decline in history occurred. The continued weakness in investment will have a serious impact on the recovery of industrial economy and structural adjustment in the future.
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