Jan-Jul All-Steel Tire Output Increased by 14.45% Y-O-Y
Snapshot: In 2023, China’s all-steel tire output showed an uptrend again after the output basis in 2022 hit a low. From January to July, the overall output fell from a high level and then trended flat. According to SCI, China’s total all-steel tire output from January to July rose by 14.45% Y-O-Y. Except for that in January, the all-steel tire output in other months saw Y-O-Y increases to different degrees.
From 2018-2023, China’s total all-steel tire output from January to July registered a W-shaped trend.
From 2018-2023, China’s total all-steel tire output from January to July registered a W-shaped trend. In 2022, China’s all-steel tire market hit a low, but the production and sales of all-steel tires were both strong amid a new production and sales environment, the recovery in China’s economy and better allocation of global resources. According to SCI, China’s all-steel tire output from January to July 2023 totaled 80 million pieces, up 14.45% Y-O-Y.
Except for that in January, the all-steel tire output in other months saw Y-O-Y increases to different degrees.
In 2023, the Spring Festival holiday was in January, while in 2022 that appeared in February. Thus, tire enterprises suspended production in January 2023 for the holiday, leading to a notable M-O-M and Y-O-Y decrease in output. However, tire enterprises resumed production and released their capacity continuously after the Spring Festival holiday. The fairish expected market and active delivery of domestic and export orders jointly ensured production continuity. Besides, due to the low basis in 2022, the output in February registered an M-O-M and Y-O-Y increase of around 80%. In March, the output increased by over 12% M-O-M and Y-O-Y. In Q2, support from the high operating rate weakened with the rising inventory and pressure of acquiring orders. In addition, there was a holiday in Q2, affecting tire production. The monthly output in Q2 declined M-O-M but still rose Y-O-Y. In July, the seasonal demand bolstered the stable operating rate. The all-steel tire output rose by 4.78% M-O-M and 8.82% Y-O-Y.
The output in Shandong accounted for half of China’s total output.
By region, the all-steel tire output from January to July 2023 was around 42 million pieces in Shandong, accounting for around 52% of the total, which increased by nearly 20% Y-O-Y. The all-steel tire output in the Jiangsu-Zhejiang-Shanghai region took up around 17% of the total, ranking second. That in Liaoning accounted for 6%, ranking third.
Overall, China’s all-steel tire market from January to July 2023 perked up under the background of China’s steady and improving economy, which hit a high beyond expectations. After the Spring Festival holiday, China’s all-steel tire market recovered rapidly. The production and sales were both bullish with strong capacity release and a rising operating rate. The replenishment and delivery of orders in the market strongly matched the capacity release. Driven by the effect of the low basis in 2022, the overall production and sales improved Y-O-Y. In Q2, support from the release of orders gradually ebbed, so the increase in the market demand slowed down, stunting the growth in the overall production and sales to some extent.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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