Jul Semi-Steel Tire Exports Hit New High and Q3 to be Strong
Keywords: Export, New high, Strong, Bolster
Snapshot: In July, China’s export volume of 40111000 (new pneumatic rubber tires for motor passenger cars, the same below) remained high, increasing slightly from June. Currently, it gradually enters the sales peak season of snow tires, bolstering China’s tire exports. Besides, amid low freight and favorable exchange rate, the profit of tire exports stays high, so tire enterprises are active in export. The overall tire exports in Q3 are likely to rise from Q2.
In July, the tire exports hit a new high, up 10.32% Y-O-Y.
In 2023, China’s 40111000 exports were fairish on the whole. After months of continuous growth, they hit a new record high in July, strongly bolstering the sales volume. In July 2023, China’s export volume of 40111000 was 272.69kt, up 4.58% Y-O-Y. The total export volume in 2023 increased by 10.32% Y-O-Y. In 2023, there were still some export dividends for China’s tires. Besides, with favorable freight and exchange rate, and fairish demand for tires in Europe, South America and Central and Eastern Africa, China’s tire exports hit new record highs for many times.
Analysis of China’s 40111000 export structure
In 2023, the low freight and favorable exchange rate promoted China’s tire exports, so the exports of 40111000 were fairish. Nevertheless, the exports to several regions saw Y-O-Y decreases. Therein, the exports to North America and Southeast Asia declined notably. Due to the poor economic performance in the U.S. and Canada, the demand for tires decreased, leading to a decline in the imports of 40111000 from China. The exports to Southeast Asia slid mainly because China’s tire enterprises built plants overseas and some orders transferred to overseas plants. Thus, Southeast Asia imported fewer tires from China. Although tire exports to several regions fell somewhat, the tire exports to Central and Eastern Africa, South America and Europe increased notably. The reasons why tire exports to Europe rose were as follows. First, with high energy price, the operating rate at local tire enterprises was low, so they preferred to import low-priced tires from China. Second, due to geopolitical issues, the demand for tires in several countries ramped up. South America has a large tire market based on the rapid development of the automobile industry. Besides, China’s tire enterprises actively explored the market in South America, leading to a notable Y-O-Y increase in tire exports to South America. Meanwhile, the tire markets in Central and Eastern Africa have great potential. Thus, China’s tire exports to Central and Eastern Africa trended up.
Research on China’s tire exports
In July, China’s 40111000 exports hit a new record high. In August, will the high exports remain? How will China’s 40111000 exports trend in Q3? SCI researched China’s semi-steel tire enterprises.
SCI researched 14 semi-steel tire enterprises in total. Therein, enterprises with a capacity of over 18 million pieces/a accounted for around 50% of the total, those with a capacity of 10-18 million pieces/a accounted for 28.57%, and those with a capacity of below 10 million pieces/a accounted for 21.43%.
The research showed that 78.57% of tire enterprises thought that tire export orders remained stable in August. Only 21.43% of them said the tire exports slowed down somewhat. Yet, all of them reckoned that China’s 40111000 exports in Q3 may continue to rise Q-O-Q and Y-O-Y.
In Q3, the exports of 40111000 are expected to be strong.
In July, China’s 40111000 exports hit a new record high. In August, they are not likely to increase notably and may change slightly. Meanwhile, it gradually enters the sales peak season of snow tires. Supported by the snow tire exports, the semi-steel tire exports in September are expected to be optimistic. Overall, China’s 40111000 exports in Q3 are likely to remain rising Q-O-Q, strongly bolstering the overall sales volume.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
Please click "Read more" for the full article.
