Recently, China's all-steel tire enterprises are generally under-employed, tire inventory is serious, investment projects have begun to wait and see, downstream companies have been affected, and the market situation for all-steel tires has reversed. It is expected that they will not be optimistic for some time in the future.
After April of this year, some new projects started or reduced their scale or postponed, new equipment was delayed, some planned projects were cancelled, and some units re-decided whether to go on projects. In late May, the tire tendering project has been significantly reduced. According to the statistics of 43 member units of China Rubber Industry Association Tire Branch, as of now, the total output of all-steel tires is 23.87 million pieces this year, an increase of 5.6% year-on-year, which is a new increase in recent years. In particular, after entering May, the phenomenon of widespread shortage of China's all-steel tire projects has become more apparent. Shandong Dawang District such as Jinyu, Xingyuan, Shengtai, Hongsheng and other large-scale steel production enterprises have all restricted their production by more than 30%. Production was suspended; large-scale tire companies such as Delta and China Strategic achieved a significant reduction in output. In April, the output of 24 all-steel tire enterprises fell by 50%.
At present, most tire companies have a serious inventory. According to the person in charge of Xingyuan Tire, although the company has adopted limited production measures, it is still increasing at a rate of several thousand a day, and the inventory is now more than 200 million yuan more than the same period; the tire inventory of 43 Tire Lions member units is 13.7 billion, an increase of 41.2% over the same period of last year. Inventories of Xingyuan, Chaoyang Langma, Pirelli, Beijing Capital, Qingdao Huanghai and Jinyu increased more than double; tire inventory of Double Happiness, Triangulation, Racing, China Jiatong, China Strategic, Guangzhou Baoli and Tianjin Zhenxin increased More than 50%, more than 70% of the company's inventory is increasing.
After the financial crisis, the price of all-steel tires in China rose steadily with rising rubber prices, and individual companies raised prices by more than ten times. However, starting from April this year, the price of all-steel tyres has been loosened, and individual companies have reduced their prices by 10% at one time, which is far higher than the market’s imagination. China Strategic is a wind vane and a considerable number of tire factories are following up. Triangular and race wheels are selling at pressure stocks and rebates. Fengshen is also engaged in marketing activities, the nature of which is similar to the price reduction. Recently, tire dealers began to place orders cautiously and waited for the first time after the top manufacturers raised their ex-factory prices. With the price of natural rubber falling from a high level, the cost of tire manufacturing companies has decreased, which has become a reason why tire dealers determine the ex-factory price or will follow suit.
The situation of all-steel tires has turned sourly that downstream companies such as rubber machinery have not anticipated the situation. Shandong Xingyuan Tire Co., Ltd. will not be able to install the new ten machine after it arrives. Some manufacturers delayed the delivery of goods to the rubber machine factory. The delay in the delivery or cancellation of orders was expanded. Some rubber machine companies began to accumulate equipment. It is relatively difficult for rubber machine companies to return funds, and the funds are generally tight. It is relatively cautious to schedule production in the second half of the year. Industry stocks such as carbon black are also significantly increasing. After China's all-steel tire industry has experienced rapid development for more than a decade, it is expected to enter a period of slow adjustment.
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