Mar 2023 China Tire Exports Saw Unforeseen Upswing
Snapshot: In March 2023, China’s tire exports floated up beyond expectations, fueled by the backlog of early orders, resilient overseas demand and supply recovery. According to data, from January to March 2023, the total export volume of China’s TBR under HS code 40112000 climbed by 10.21% Y-O-Y.
China’s tire exports ramped up more than expected, boosted by multiple factors.
According to data, as of March, the total TBR export volume in China advanced by 10.21% Y-O-Y. In March, China’s tire exports picked up beyond expectations, due to the backlog of early orders, resilient overseas demand at the beginning of 2023 and supply recovery. Specifically, on the one hand, the production transportation in January and early February was greatly capped by the domestic weakened transportation environment and the Spring Festival holiday. Thus, the exports mainly covered orders in the early days. Meanwhile, with the upturn in the transport environment, orders saw backflow in a short period. The PMI New Export Order Index was in expansion for two consecutive months, better than other countries. On the other hand, overseas demand stayed more resilient than expected at the beginning of 2023. Moreover, China’s tire supply recovered, and its export volume warmed up against order cover.
The export destination of China’s tire varied, with notable growth in Latin America, Africa and Europe.
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 Latin America surged by around 40% Y-O-Y, and its proportion reached 21% of the total. Besides, that to Europe and Africa also saw notable increments Y-O-Y, 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% roughly of the total. That to ASEAN dipped by around 3% Y-O-Y, and its proportion was over 10%.
Mexico has become China’s largest tire export trading partner.
Jan-Mar 2023 China Tire Export by Destination
The share of China’s tire exports to the U.S. continued to shrink. On the one hand, the export volume to the U.S. pared down, taking cues from the drop in its own demand and high inventory. On the other hand, due to high tariffs, China’s tire exports to the U.S. saw cutbacks both in volume and proportion. Besides, 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 have exceeded the U.S. to rank first, benefiting from the rapid development of the automobile industry in Mexico. Each year, Mexico needs to import a large amount of tire as its domestic capacity is far from satisfying demand. In recent years, affected by trade policies, China faced headwinds in exporting tire to the U.S. and EU, so regions other than Europe and the U.S. saw rises 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 March, the increment in China’s tire exports was beyond players’ expectations. However, in the long run, the export growth rate may swing down. In Q2, 2023, resilient overseas demand and backlog of some early orders may underpin the export market. In the short run, the tire export volume will possibly remain high. Yet, due to high exports in May and June 2022, slowdown or even recession in European and American economic growth as well as prosperity difference among trading partners, it is envisaged that China’s tire exports will be bolstered, but the export growth may slow down.
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