China's tires weakened A few days ago, the United States made a ruling that there was no threat to the truck tires from China and no anti-dumping or countervailing duties would be imposed. Chinese tires are still in excess capacity After the news of the “double reverse†victory came, domestic companies “plunged up their sleeves†and were ready to work hard. A large number of companies such as Zhongce Rubber, Fengshen Tire and Wanxin Tire stated that they are ready to receive orders from the United States. However, the above professionals said that at present, China's tire production capacity is still in a state of excess, export competition is fierce, and will not stop because of the "double anti-" victory. In addition, the recent surge in prices has further weakened the price advantage of Chinese tires. It is understood that as the price of products continues to rise, the competitive pressure on tire exporters is increasing. An exporter of a tire company stated that at present, the price of Chinese exported tire products is already approaching the international second-tier brands in North America, and is basically the second brand of the same-line brand in Europe. Previously, one of the important points of the Chinese side's “double reverse†counter-argument hearings at the truck and bus tires was that tires continued to increase prices, and the products could not be refurbished many times, which did not constitute direct competition with American products. Without the price advantage, the competitiveness of Chinese tires will be greatly reduced. In addition, raw material prices have risen sharply, and a large number of tire companies in China are experiencing unsustainable cost pressures and are on the verge of a loss. Enterprises can't bear the cost burden Not long ago, a domestic tire company declared that its operating costs were in a sustained state of loss due to the continuous and significant increase in tire production costs. Although the sales price of domestic tires has risen several rounds, it has not kept up with the increase in raw materials. Compared with the increase in tire prices, the cost of raw material purchases has increased even more. The above companies stated that in just two months, the price of materials used from rubber to all tires has risen by as much as 80% to 200%. The reporter learned that there are many tire companies that have the same problem in China. Obviously, the huge increase in cost has brought a crisis to many tire companies. An executive from a tire company in Shandong told the reporter that at present, small and medium-sized tire companies are “very hard to accept†because tires cannot keep pace with the rise in raw materials. He said: "It is a dilemma for us to rise more without competitiveness and to make losses less severe." It has been observed that the price increase of tire companies is still continuing and foreign trade export markets are not immune. According to the published price increase notice, in March and April, there are a number of tire companies planning to increase prices, including many well-known brands at home and abroad. Some market analysts said that in the raw material market, although the price of rubber has been temporarily adjusted, the prices of carbon black and steel cords are still rising. It is difficult for tire companies to effectively improve cost pressure in the short term. A tire company in Shandong said that many export companies always love to fight price wars, but this is an endless loop and there is no future. He believes that this "double anti-" victory is a chance for China's tires. It is time for companies to rely on brand and quality to win.
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China's tire pressure has not reduced part of the company's losses
"This time, we won the United States' dual reaction. It is a good thing for China's tires , but we shouldn't be overjoyed." Recently, a domestic professional who has been exporting tires has said so.