Jan-Oct All-Steel Tire Output Rises by 14.48% in Total, Hits New High
Snapshot: China’s total all-steel tire output from January to October has shown an N-shaped trend in the past five years. In 2023, it rose by 14.48% in total, hitting a five-year high.
The total all-steel tire output from January to October increased by 14.48%, hitting a new high.
In 2019, the all-steel tire industry still faced the pressure of oversupply, curbing the capacity release to some extent. The all-steel tire output dipped Y-O-Y. After 2020, the new demand drove up the supply, leading to rises in the output for two consecutive years. However, the output in 2022 hit a five-year low, mainly as the decrement in demand was larger than that in supply. Although the exports of all-steel tires saw a Y-O-Y increase, the domestic demand hit a low. Besides, the tire inventory was high, causing a notable decrease in the overall output. In 2023, the supply and demand both recovered. With demand improving and profits recovering, the operating rate was at a high level. From January to October, the all-steel tire output increased by 14.18%, hitting a five-year high.
Except for the decrease in January, the all-steel tire output rose to varying degrees in other months.
In 2023, the Spring Festival holiday was in January, while that was in February in 2022. Therefore, the tire output in January 2023 fell notably Y-O-Y and M-O-M. After the holiday, the tire market was expected to improve, leading to a continuous release of tire capacity. Bolstered by ample domestic and overseas orders and the low output basis in 2022, the output in February ramped up significantly by around 80% Y-O-Y and M-O-M. In March, the tire output also saw a Y-O-Y and M-O-M increase of over 12%. However, in Q2, 2023, the weak demand dragged down the operating rate. Thus, the tire output declined M-O-M. In Q3, the prices of major feedstock bottomed out and rebounded, affecting tire production. Thus, the tire market players held sentiments of raising prices. Moreover, the exports remained high, bolstering the tire output. Thus, the monthly tire output rose by over 8.5% in Q3, 2023.
The tire output in Shandong accounted for 50% of China’s total output.
From the perspective of regions, Shandong is a large tire producer in China. From January to October, the all-steel tire output in Shandong was around 64 million pieces, accounting for around 55.3% of China’s total output. The all-steel tire output in Jiangsu-Zhejiang-Shanghai region accounted for around 17.2%, ranking second. That in Liaoning took up around 6.3% of the total, ranking third. Besides, the all-steel tire output in other regions accounted for different proportions of China’s total output.
On the whole, China’s all-steel tire market performed well from January to October 2023 against the background of a stable and improving national macroeconomic, with both supply and demand showing a growth trend. On the one hand, the tire capacity was released normally and changed slightly each month. On the other hand, the tire production was relatively continuous and stable. The influence of holidays on tire production weakened somewhat. In addition, the recovery in demand strongly bolstered the output. Particularly, the tire exports increased for several consecutive months and hovered at highs, strongly bolstering the output. Last but not least, the prices of feedstock were at low levels. With the profit of the tire industry recovering, tire enterprises showed higher interest in production, leading to a rise in output.
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