Impacts from the Public Health Event on China’s Tire Export

SCI99

2020-04-17

Impacts from the Public Health Event on China’s Tire Export

[Introduction]: The public health event impacted China’s tire industry twice. For the first time, from January to February, COVID-19 outbroke in China. Accordingly, China’s tire enterprises suspended production, resulting in the supply shortage. Thus, export orders were not able to be delivered on time. For the second time, since H2 March, China’s tire exports were hindered obviously, as COVID-19 spread to many foreign counties.

Since H2 March, foreign tire merchants cancelled or delayed orders, faced with the severer public health event at abroad. Based on China’s tire market actual situation, SCI analyzed the public health event’s impacts on China’s tire market and helped you learn China’s tire enterprises’ current status and countermeasures.

Impact for the first time

In Q1, 2020, China’s tire exports declined, due to the difficult work resumption and limited logistics. According to SCI’s statistics, China’s tire export dependence degree exceeded 40%, and China’s semi-steel tire export dependence degree increased year by year. But, the unexpected outbreak of COVID-19 exerted significant impacts on tire exports.

China’s Spring Festival holiday was extended due to the outbreak of COVID-19, and China’s tire enterprises delayed the work resumption date many times. From February 10, a few tire enterprises resumed work, but the overall production resumption was slow curbed by the absence of employees and imperfect protection measures. The long-term production suspension led to the shortage of export supply, and most export orders were difficult to be completed on schedule. Although tire enterprises prioritized delivery for export orders, the transportation was restrained. As a result, China’s tire exports dropped notably. According to GACC’s statistics, from January to February 2020, China’s export volume of passenger car and truck tires (HS code: 40112000) was 375.84kt, down 16.81% Y-O-Y, and the Y-O-Y decrease was 7.16% higher than that from January to February 2019. China’s export volume of passenger car and truck tires (HS code: 40111000) from January to February 2020 was 270.13kt, down 8.01% Y-O-Y, and the Y-O-Y decrease was 6.88% higher than that from January to February 2019.