Semi-Steel Tire Export Remained High in 2022 Yet to Drop In 2023
In 2022, China’s semi-steel tire exports improved, and the top six countries excelled in export volume, especially Russia, which achieved 67.97% Y-O-Y growth. Looking forward to 2023, China’s tire export may face downward pressure as foreign demand is expected to weaken amid economic underperformance.
Semi-Steel Tire Export Dependence Degree Analysis
China is the largest tire exporter in the globe, and China’s semi-steel tire export dependence degree is over 48%, so export plays an important role in China’s tire industry. In 2022, China’s semi-steel tire export volume notched a new high, which supported the overall sales of China’s tires greatly.
2022 Semi-Steel Tire Export Analysis
China’s tire export volume registered growth in 2022 given the global supply-demand gap. According to GACC, the export volume of the tire under HS code 40111000 was 2,380.56kt in 2022, up 3.20% Y-O-Y, notching a new high in recent years.
Specifically, tire producers stopped production for the Spring Festival holiday in February 2022, so the export volume hit the bottom of the year. Later, as producers resumed work and logistics was restored, tire producers’ export showed an upward trend. China’s semi-steel tire export volume met a new high in July with the help of foreign demand recovery. However, as foreign demand weakened later, the export volume dropped month by month from August to November. In December, stimulated by price increase policies, foreign traders conducted procurement in advance, which promoted semi-steel tire exports.
China Export to Russia Increased Significantly
2022 Top 6 Countries of China Tire Export Under HS Code 40111000
China’s tire export volume increased in 2022 as a whole, and the export volume to the top 6 trading partners accounted for 28.02% of the total. However, the export volume to the U.K. dropped in 2022 compared with that in 2021, and so did its proportion in China’s total export volume. While the export volume to Russia increased by 67.97%, and its proportion increased to 3.83%. At the same time, the export volume to Germany, Brazil and Mexico all increased by different degrees from last year.
The main reason for the favorable export to Russia was that Russia adjusted the origin of its tire imports, that is imported more tires from China, which supported China’s sales volume of tires.
2023 Tire Export to Edge Down
With China raising the export tax rebate rate of the tire from 9% to 13% in November 2018 and the promotion of the Belt and the Road, the semi-steel tire demand from countries along the Belt and Road is expected to be favorable. International tension, high international production costs and rising global car ownership are anticipated to support China’s semi-steel tire exports. However, semi-steel tire trade frictions may persist. China’s tire producers tend to build plants abroad. With normal production and operation of large overseas plants, some tire export orders are expected to be transferred to overseas plants, which makes it difficult to sustain the high growth of exports. Especially amid the not optimistic economic situation in the world in 2023, overseas demand is envisaged to be under downward pressure.
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