Exports have been repeatedly calculated China's tire industry needs to change the development model

Recently, the United States has adopted a three-year “ tire special protection measure” for Chinese tires since 2009. In the previous three years, the United States imposed a three-year tariff on tires imported from China, and added 35 for the first year. % tariff, 30% for the second year and 25% for the third year. After the bill expires, the U.S. import tariff on Chinese tires will drop to 4%. As the largest export market for Chinese tires, the United States has caused punitive tariffs to cause Chinese tire exports to drop to 31 million and 27.3 million in 2010 and 2011, respectively.

Fu is unparalleled, and misfortune is not alone. As soon as the United States has finally lifted the ban on China's tires for three years, the European Union will implement the "Tire Labeling Act" on November 1, 2012. According to the Act, all car tyres, light truck tyres, truck tyres and bus tyres sold in the European Union must be labelled to indicate the tyre's fuel efficiency, rolling noise and wet grip level. The performance of tyres is classified from high to low. G has a total of 7 levels, with A being the best, G being the worst, and tyres that fail to reach Class F cannot be sold in the EU. In fact, tires produced after June 30, 2012 must be labeled in order to enter the EU market.

According to the sample survey conducted by the National Tire Rim Standardization Technical Committee on tire companies, the rolling resistance of Chinese passenger car tires is mostly E and F grades, most of which can meet the minimum requirements of the first phase of the EU, but a considerable proportion of them fail to reach the EU. The second phase of the minimum requirements, which also means that most of China's tire products will be rejected outside the EU market.

In recent years, China's tire industry has developed rapidly. Tire production and export volume have ranked first in the world. It has become an important force in the world's tire industry. It has had a considerable impact on the global tire market, but the tire industry has suffered or will face trade barriers. But more and more, in addition to the United States, the European Union, Brazil, Peru, India and other countries have also initiated anti-dumping investigations on China's tire products, which has become the largest destabilizing factor in China's tire exports.

As the world’s largest tire manufacturing country, China’s total production of tires for tires in 2011 reached 832 million, an increase of 8.55% year-on-year, and it is expected to exceed 900 million in 2012, accounting for approximately one-third of global output.

Statistics from the State Customs show that in 2011, China’s tire export volume reached 193 million, exports accounted for 42% of total output, and domestic tire export delivery values ​​of 45 key enterprises in 2011 reached 62.32 billion yuan, an increase of 24.8% over the previous year. The industry achieved a trade surplus of 14.736 billion U.S. dollars. From January to June 2012, the export volume and delivery value of tires from 45 companies increased by 6.6% and 9.4% respectively year-on-year.

From the tire export countries (regions), China Rubber Industry Association statistics show that in the first half of 2012, China’s exports of all-steel radial and semi-steel radial tires to the United States accounted for 24.25% and 18.81%, and exports to the EU accounted for 6.33% and 22.74. %; Biased exports to the United States accounted for 42.54%, exports to the EU accounted for 12.34%.

At present, China’s tires have an external dependency of 1/3, and any restrictions on tire imports in foreign markets will pose serious challenges for Chinese tire products that rely on prices to win and generally do not have high performance.

In recent years, China’s tire exports have constantly encountered unfair competition such as anti-dumping. The United States, Argentina, Turkey, India, and South Africa have successively anti-dumped Chinese tires, and some anti-dumping duties are as high as 100%. At the same time, with the increasingly stringent requirements on tires in terms of technology, quality and safety, such as the EU tire safety regulations and labeling laws, the United States and Japan have also introduced similar regulations. The core of these laws and regulations is to make specific provisions on the tire's fuel efficiency, wet grip, etc. At present, Japan has begun to implement, the United States will implement it next year, and the EU will implement it later. Affected by this, if domestic tire companies do not actively adjust their product mix, China's tires will face a diversified and more severe export trade situation.

With the expiration of the US Tire Special Guarantee, China’s tire exports are expected to show a recovery growth. On the other hand, although the EU Tire Labeling Law will be formally implemented on November 1, 2012, China’s tire exports will still face a severe trade environment. However, with the escalation of the US Tire Special Safeguards expired, the anti-dumping measures of the European Union and other countries will hardly hinder the sustained development of China's tire industry, driven by the growth of domestic demand in China and the US and other external demand markets.

In terms of external demand, although the United States, the largest export market for tires, has initiated anti-dumping measures against me, it has not been able to fundamentally eliminate the market share and competitiveness of Chinese tires. The EU's various tricks are also difficult to achieve.

In 2009, China exported 43 million tires for passenger cars/light trucks to the United States, accounting for 18% of the nation's total consumption. The introduction of the special bonded tax has reduced the export of such tires to the United States to 27.3 million in 2011, which is less than in 2009. 15.7 million, but China is still the largest country exporting tires to the United States. At present, the total consumption of American passenger car/light truck tires is about 270 million, and the expiration of the special bond will make China's semi-steel tires expected to regain about 30% of the U.S. import market, corresponding to the increase in passenger car/light truck tires. About 50 million, equivalent to 26% of China's total export volume of 193 million in 2011.

In terms of domestic demand, in the first half of 2012, the production and sales of passenger cars in China were 7,599,300 units and 7,613,500 units respectively, representing an increase of 7.87% and 7.08% year-on-year. It is expected that the annual sales of passenger cars will reach 20 million units. At the same time, as of June 2012, China’s car ownership amounted to 114 million, an increase of 8.11 million from the end of 2011, an increase of 7.66%. From 2009 to 2010, it is the domestic auto consumption blowout period. According to the law of tire usage, this batch of vehicles will enter the tire replacement peak from 2012 to 2013, and strong demand for tire replacement will continue in the future.

According to industry experts, the total number of tires in 2012 will reach 483 million, an increase of 5% to 7% over the previous year, of which the radial tire output will be around 432 million, an increase of 8% to 9%, and the radialization rate will be around 89%. By 2015, China's annual tire production will exceed 550 million.

According to data from the National Bureau of Statistics, from January to June 2012, China's tire industry realized sales revenue of 78.984 billion yuan, an increase of 36.16%, a total profit of 13.364 billion yuan, an increase of 59.81%, the number of enterprises in the industry is 2655 , an increase of 153 over the same period last year.

In general, China’s tire industry has gradually matured in international trade disputes after undergoing many unfair treatments. However, fundamentally, Chinese tires can only gain the right to speak in the international market after trying hard to improve their own strength. Therefore, it is the most fundamental way out of China's tire industry to find itself inadequate and work hard.

At present, there are a large number of enterprises in the tire industry in China, but most of the companies are not large-scale, and their competitiveness is not strong, and their ability to resist risks is weak. In particular, there is still a gap between domestic tire production technology and technology and the international level. Multinational corporations invest in China with their technological and capital advantages, and gradually change from joint venture to sole proprietorship, shareholding change control, acquisitions, mergers and acquisitions, etc., to control domestic tires. About 80% of production and firmly occupy the high-end market, compared with domestic companies less than 10% of the profit rate, some foreign-funded enterprises have a profit rate of more than 20%, which is twice the profits of Chinese companies.

According to the “2012-2016 China Tire Industry Production and Sales Demand and Investment Forecast Analysis Report” analysis, the current domestic tire market is divided into three major tiers: the first tier is a sole proprietorship or joint venture represented by Michelin, Bridgestone, Goodyear, etc. The advantages of enterprises are radial tires such as cars and light trucks, and the second echelon is a sole proprietorship or joint venture represented by Hankook, Kumho, and Jiatong. Its advantages lie in the mid-range passenger car and light duty radial tire market; The three-tiered team is a domestic enterprise and its competitive advantage is still confined to occupying part of the market at a low price.

According to industry insiders, on the whole, China's tire industry is still facing problems such as lack of technological innovation, lack of brand awareness, and poor product quality and performance. This is also the fundamental reason why Chinese tires are repeatedly subjected to unfair treatment.

To avoid repeated violations, Chinese tires must actively change their development methods, gain benefits from simply relying on investment to increase scale, and gain benefits from increasing technological inputs and optimizing product mix, shifting from extensive management to refined management, with high consumption and low output. We are shifting from low consumption to high output, while striving to adjust the product structure, increase the technical content of tire products and added value of products, and effectively enhance the overall strength of the company and the competitiveness of its products in the international market.

In addition, due to the obstruction in the major export markets, China's tire industry will face 10% to 15% of excess capacity, therefore, to Xue Xue suggested that China's tire industry must rely on market demand, aiming at the direction of product development, actively eliminate backward Production capacity, control of excess production capacity, promote the industry to the direction of safety, environmental protection, green, low-carbon, and smart.

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