Apr 2023 China Tire Export Embraced Slower Y-O-Y Growth
Snapshot: In April 2023, the export volume of TBR under HS code 40112000 floated up Y-O-Y but dwindled M-O-M. In April 2023, China’s tire exports continued to perform well, fueled by low export base last year, resilient demand in developed economies and measures set to strengthen foreign trade. However, the support from early orders waned gradually, chipping away at the high growth of tire exports.
In April 2023, the tire export volume witnessed positive but slower Y-O-Y growth.
2023 China Tire Export Volume M-O-M and Y-O-Y
According to data, in April 2023, the export volume of China’s TBR under HS code 40112000 climbed by 9.98% Y-O-Y but down 1.3% Y-O-Y. The total tire export volume from January to April 2023 ascended by 10.13% Y-O-Y. In April 2023, China’s tire exports continued to perform well, fueled by low export base last year, resilient demand in developed economies and measures set to strengthen foreign trade. However, the growth rate of China’s tire export in April slid by 4% from last month, taking cues from slower export to Southeast Asia, weaker support from early order delivery, etc.
The growth of exports to Latin America, Africa and Europe was notable, while that of exports to North America crashed.
In terms of the export trade flow, the tire export volume to Latin America, Europe and Africa leveled up greatly Y-O-Y. Thereinto, the export volume to Europe soared by upwards of 110% Y-O-Y, and its proportion reached 10.84% of the total. Besides, that to Latin America and Africa surged by over 30% Y-O-Y and their proportions were over 20% of the total, contributing to China’s export growth. The overall export trade flow shifted. On the contrary, the export volume to North America crashed Y-O-Y, and its proportion only took up 5.63% roughly of the total. That to ASEAN saw a downtick Y-O-Y, but its proportion was more than 10%.
Mexico has become China’s largest tire export trading partner.
Jan-Apr 2023 China Tire Export by Destination
The share of China’s tire exports to the U.S. continued to shrink. On the one hand, China’s tire exports to the U.S. saw cutbacks both in volume and proportion, stemming from the high tariffs. On the other hand, some tire orders of the U.S. were transferred to conduct production in Southeast Asia’s plants. Thus, China’s tire exports to the U.S. descended.
China’s tire exports to Mexico topped the list, benefiting from the rapid development of its automobile industry. Each year, Mexico needs to import a large amount of tire as its domestic capacity is far from satisfying demand. In recent years, China’s tire exports are capped by some trade policies, and regions except Europe and the U.S. embrace growth in China’s tire exports. Besides, China’s tire export proportion to Mexico geared up year by year, buttressed by its robust demand.
On the whole, in April 2023, China’s tire exports continued to maintain robust growth. However, in the long run, tire export in China may face pressure. SCI reckons that the tire export growth in May will likely slow down. On the one hand, the support from early order delivery may wane, failing to underpin the export market. On the other hand, against global economic headwinds, the overseas demand may narrow, exerting pressure on China’s tire exports.
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