According to data released by the National Bureau of Statistics of China, in the first half of 2010, the total tire production in mainland China was 312.3 million, an increase of 31% over the same period in 2009. Under the background of the short-term financial protection crisis and the short-term financial crisis in the United States, this number has caused many industry insiders to worry: China's tire industry has seen excess capacity. At present, the tire industry in mainland China faces many problems, such as overcapacity, large fluctuations in prices of upstream raw rubber, and uncertain internal and external sales markets. The Guangrao County, which has a production capacity of radial tires and accounts for 19% of tire production counties in mainland China, is well worth learning by adjusting the industrial structure and base development experience.
According to statistics from the Guangrao Bureau of Foreign Trade and Economic Cooperation from January to June, the first half of Guangrao County's tires exported 531 million US dollars, an increase of 53.3%, accounting for 88.6% of the county's total exports. In the first five months, the county's tire industry achieved a total output value of 14.6 billion yuan, an increase of 45% over the same period of 2009, and realized a tax of 1.93 billion yuan, an increase of 73.5% over the same period of 2009. The increase was basically the same as in 2009. From the data point of view, the county tire production and sales did not appear worrying trend.
The impact of the United States tire "special protection case", after nearly a year's adjustment of the export structure and other response measures, the impact seems to be gradually disappearing. The Guangrao Bureau of Foreign Trade and Economic Cooperation said that the county’s tire export destination includes more than 100 countries and regions such as the European Union, Australia, Canada, and the Middle East, and exports to the United States account for only about 10% of total exports.
Although the impact of the special safeguard case is not as large as it seems in the imagination, good statistics and active countermeasures cannot completely dilute the problems existing within the tire industry. The first is the large fluctuations in the price of rubber in the upstream raw materials. As the main raw material for tire production, rubber has a high degree of dependence on imports in mainland China. As of June 2010, due to the speculation of hot money, the price of rubber rose by nearly 10,000 yuan per ton compared with 2009. Yongtai Group's Minister of External Relations, Cao Yubo, also told reporters that the large-scale investment of hot money is constantly creating rubber dealers overnight riches and overnight legend of poverty, "a period of time, rubber fell from 30,000 yuan per ton to 1 Ten thousand yuan took only 2 weeks."
Some analysts pointed out that due to the continuous increase in international trade friction and the expansion of tire companies, the tire industry in China has faced the problem of overcapacity. The issue may emerge in the second half of 2010 or early next year.
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