The Tire Output of Shandong Province Increases 2.7% for the First Eight Months
According to Shandong Economic and Information Technology Commission, from Jan. to Aug., 202,493,000 tires are produced in Shandong province, increasing by 2.7%. Among them, 72,165,000 tires are radials, increasing by 9.1%. The six key tire enterprises have realized main business income of 30.85 billion RMB, increasing by 13.7%, and the profit and tax has reached 1.96 billion RMB, increasing by 21.7%, the profit is 1.36 billion RMB, increasing by 26.3%.
Sizing material takes about 70% of the cost of tire production raw material. From Jan. to Aug., the average purchasing price of natural gum in Shandong is 36,500 RMB per ton, increasing by 52.8%; the average purchasing price of polybutadiene rubber is 30,000 RMB per ton, increasing by 50%.
The drop of domestic automobile production and sales has affected the sales of tires. Since the costs of tires have increased, many enterprises have to step down the tire production and raise the price by 10%. They also reduce the production of the tires whose rubber consumption is high while the output value is low, such as diagonal tire. Lastly, the enterprises explore the foreign market and increase the export. From Jan. to Aug., the delivery value of Shandong tires has reached 28.04 billion, increasing by 46.2%, and compared with that from Jan. to June, it has increased by 3.1%.
Tire industry will be influenced by many factors, such as raw material price escalation, tire production capacity expansion, downward trend of the growth rate of domestic automobile production, foreign demand shrinkage, etc. Shandong Economic and Information Technology Commission predict that the fourth season will be harder for tire industry.