Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Hot topics at virtual CES: AVs, air taxis and drones
      Apollo to raise prices of Vredestein brand tires
      China's tire production up in 2020
      Renault to form JV with U.S. hydrogen specialist Plug Power for fuel cell vans
    • GRI expanding ag tire capacity at 3-year-old Sri Lanka plant
      Apollo to raise prices of Vredestein brand tires
      China's tire production up in 2020
      Smithers webinars focus on performance materials in green tires
    • WCCO task force navigates pandemic, expands communications
      JobsOhio funding gives Sperry & Rice room to grow
      TRAC's Glenn Maidment caps 51-year rubber industry career
      LafargeHolcim looks to solidify U.S. presence with Firestone Building Products purchase
    • Biesterfeld to supply Denka acrylate rubbers
      Ace Products & Consulting partners with Wallace Instruments
      Engel starts distribution of its Wintec brand in Europe
      ANRPC notes rubber price recovery
    • Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
      IRP Medical solidifies portfolio with KDL deal
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • ARP Materials adds technical sales manager
      Jack Murphy joins Akron Dispersions
      Adriano Alfani named Versalis CEO
      Maroon Group adds to Southeast sales team
    • Hot topics at virtual CES: AVs, air taxis and drones
      Paycheck Protection Program funding reopens Jan. 15
      Taiwan tire makers propose settlement of import duties case
      Lobbying group unveils policy agenda to speed transition to EVs
    • Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
      Column: Still far way from normal
    • Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
      A comparative study looking at effects of curing kinetics and batch variation on SBR injection molding and numerical analytics
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
      New Products: MonTech automates bale cutter for safety, productivity
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Hot topics at virtual CES: AVs, air taxis and drones
      Apollo to raise prices of Vredestein brand tires
      China's tire production up in 2020
      Renault to form JV with U.S. hydrogen specialist Plug Power for fuel cell vans
    • Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
      IRP Medical solidifies portfolio with KDL deal
    • Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
      Top Glove reopens COVID-hit factories with enhanced precautions
      Malaysia electronics group to enter rubber gloves sector
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Select™: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Tire
August 16, 2019 02:22 PM

Chinese tire makers brace for the new normal

Jane Ho
European Rubber Journal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    BEIJING—China's tire production and sales volume recorded the first drop in more than two decades in 2018, against the backdrop of the first global downturn for the automotive industry in the past ten years.

    The first two months of 2019 saw an even sharper year-on-year decline in the China market, Shen Jinrong, chairman and general manager of Zhongce Rubber, said during her speech at the China Rubber Conference held in Guangzhou in March.

    According to data from the China Rubber Industry Association, the country's tire production fell by 0.8 percent year-on-year to 648 million units in 2018. Radial tire production fell by 0.7 percent to 609 million.

    "You cannot overstate the graveness of the drop in China's domestic consumption," Shen said.

    In 2018, China's tire makers had $479 million in profit on $25 billion revenue.

    "What you are seeing as the sector's profit also covers the manufacturers' non-main business, without which there's basically no profit," he said.

    The U.S. and Europen Union anti-dumping tariffs also are casting heavy shadows as more than 40 percent of China's tires are exported with the two markets accounting for a significant share, he added.

    According to CRIA, China exported 5.4 million metric tons of tires last year. Forty percent of the passenger car tires, which totaled 2 million tons, were sold in the U.S. and EU. Of the 3.4 million tons of truck and bus tires exported, 25 percent were sold in those markets.

    Faced with such headwinds, CRIA estimates that China's truck and bus tire production in 2019 will fall by 13 percent to 116 million units, when compare to 2018.

    Shen Jinrong

    Overall production, including bias tires, is expected to decline by 1.8 percent to 636 million.

    Trade conflicts have become the biggest uncertainty in global economic growth, according to Li Ruoyu, director of the Financial Department at the State Information Center's Economic forecasting division at the conference.

    According to Li, the Chinese authorities have taken into full account the international and domestic downturn. It set the 2019 GDP growth target at 6-6.5 percent, compared with the 6.5 percent target for 2018. It also is rolling out a series of policies such as tax cuts to counter the trend.

    Tire and other rubber products' export rebates were raised from 9 percent to 13 percent in November. Value-added tax rate also were lowered by 3 percent to 13 percent in April. Zhongce's Shen Jinrong, however, contends that such measures wouldn't be all that helpful.

    Shen looks to the rural markets for passenger car tire opportunities as the average vehicle price is dropping. He also notes that global demand for high-end truck and bus tires is rapidly expanding and Chinese manufacturers are neck-and-neck with international giants in the 400-kilometre tire-life segment.

    There sure are areas that Chinese tire makers need to improve. All Chinese tire plants, for example, still have storage and transfer facilities for green tires, likely due to restraints by the current curing methods, CRIA's Xu Wenying noted at the conference.

    "Such processes sure can be streamlined," she said.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION