Tire Market: Hard to Pick up Under Great Pressure (May 2021)
The tire market did not improve significantly this month. Due to poor end demand, sales in the tire market were slow. Agents’ sales underperformed, so their inventory was at a high level. They mainly consumed inventory and had low purchasing intention. At the same time, the export of tires was affected by the shortage of containers and the rising freight this month. Under the pressure from China’s domestic and foreign markets, the overall sales of tires were poor, and the inventory at producers was high, resulting in the significant decline in the operating rate.
1. Semi-Steel Market Underperformed
China’s semi-steel tires are mainly sold in the export and replacement markets, of which the export market accounts for 41.5%, ranking first, followed by the replacement market, accounting for 37.3%. The OE market accounts for 21.2% of the total. It can be seen that the sales in export and replacement markets have a great impact on the overall sales of semi-steel tires.
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