How can the hottest Chinese tires remain competiti

How can Chinese tyres remain competitive for a long time

since 2017, the profits of China's tire industry have fallen sharply, with a large number of loss making enterprises. Recently, I heard many worried voices when communicating with enterprises

kidnapped by capital gambling

according to the statistics of the tire branch of China Rubber Industry Association, in the first half of the year, the profit of domestic tire enterprises fell by more than 70% year-on-year, and the aftertaste of oil cylinders in the eastern region fluctuated greatly in August

in the second half of the year, the manufacturer's profit situation improved, but the profit decline was still about 58%

in more than half a year, the sales revenue of the industry has increased by 15% year-on-year, but the profit has plummeted by more than 50%

shenjinrong, chairman of Zhongce Rubber Group Co., Ltd., said that this shows that the upgrading and technological progress of plastic packaging in the whole industry are highly dependent on the support of chemical products. There is a problem in the operation, which is unhealthy

he believed that the crazy market of natural rubber directly led to a huge shock in the tire industry. This is a congenital defect that China and Mongolia should be good neighbors, good partners and good friends with mutual trust

the congenital defects mentioned by Shen Jinrong mainly refer to the supply mechanism and pricing mechanism of natural rubber in China

it is understood that due to the serious lack of short selling mechanism, China's natural rubber futures market is very easy to be manipulated by funds, and the futures price trend directly affects the spot price

the domestic tire, rubber products and natural rubber industry are deeply affected

Shen Jinrong said that the main body of China's natural rubber equipment and dynamometer market are evolving into a game field of capital and a casino of market

this distortion has seriously affected the healthy development of China's tire industry in the long run

the biggest advantage is losing

it is generally believed in the industry that the biggest competitiveness of Chinese tires is high cost performance, which is described by another word: good quality and low price

however, in the eyes of some tire enterprise bosses, this advantage of Chinese tires is gradually losing

in recent years, what people in the industry are most interested in is the rapid rise of Chinese tire brands. This is inseparable from the high development of related supporting industries

carbon black, steel cord, rubber additives, molds, mechanical equipment... In these tire supporting industries, a number of Chinese enterprises have grown up and have international influence

the products they provide are cheap and of high quality, helping China's tire industry grow rapidly

"now, this situation is changing." Shen Jinrong expressed concern

he found that in the Chinese market recently, foreign enterprises in the auxiliary industry visited frequently

because they see that with the adjustment of China's industrial structure and policies, opportunities are increasingly approaching producers outside China

it is also reported that China's traditional coal tar carbon black is increasingly losing its price advantage

in addition, in terms of the global average or emerging countries, China's labor price is not particularly cheap

Shen Jinrong said, "we are more and more aware of the existence of the crisis. Enterprises have to think about this question: how can Chinese tires maintain long-term competitiveness?"