Semi-Steel Tire Operating Rate to Stay High Fueled by Exports
Snapshot: In 2023, China’s semi-steel tire market is poised to revive, but the overall recovery falls short of expectations. The overall replacement tire market of semi-steel tire underperformed, weighing on the operating rate. However, due to high energy prices in Europe, its demand for China’s tire was favorable, bolstering the operating rate to keep high.
In June, the operating rate of the semi-steel tire industry remained high.
In 2023, the operating rate of the semi-steel tire industry remained high, except in January when it declined Y-O-Y due to the Spring Festival. After the holiday, semi-steel tire enterprises maintained high loads. In June, the operating rate of the semi-steel tire industry still keep high.
In June, the operating rate of the semi-steel tire industry was 70.66%, up 0.07% M-O-M and 6.19% Y-O-Y. In June, the operating rate at semi-steel tire enterprises inched up from last month. The overall operating rate trended at highs, boosted by sales driven by favorable exports. Besides, at present, the production peak season of snow tire also pushed up the operating rate of the semi-steel tire industry.
In June, the replacement tire market underperformed.
In 2023, China’s replacement tire market may recover. From January to June, sales of replacement tire at agents trended up Y-O-Y but saw M-O-M decline from March. Ahead of the Spring Festival, replenishment was insufficient. Yet, after the holiday, agents were active in stocking up. Thus, in February, sales at agents performed well and rallied M-O-M and Y-O-Y. However, the market revived limitedly. After March, sales at agents declined month by month. The replacement tire market remained soft, weighing on the overall sales.
In June, the export market remained resilient.
In H1, 2023, the export market of China’s semi-steel market performed well. From January to May, the total export volume of semi-steel tire in China reached 94,839 thousand pieces, up 17.23% Y-O-Y. Especially from March to May, the export volume of semi-steel tire hit the highest. The monthly export volume of semi-steel tire in May exceeded the level in July last year and reached a historical high. According to SCI, despite a slowdown in exports in June, the overall export market still kept resilient, underpinning the overall sales. Meanwhile, China’s semi-steel tire enterprises showed that the exports in Q3 would be favorable, with passable new orders.
In July, China’s semi-steel tire enterprises may hold high loads.
In July, at present, no enterprises have plans for taking a holiday. The replacement tire market recovers less than expected, greatly dragging down the overall sales. However, China’s semi-steel tire market may continue to stay resilient. Favored by freight and interest rate, China’s semi-steel tire enterprises are active in exporting. Meanwhile, there is demand for tire in Europe. It is estimated that China’s semi-steel tire market will perform well in July, bolstering overall sales. Fueled by exports, the operating rate at China’s semi-steel tire enterprises may remain high in July.
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