The mode of use of tires

The price increase of container shipping has roughly experienced five stages:

In the first stage (2020.2~2020.6), the shipping market performed poorly under the epidemic, but the consolidation price was relatively stable, mainly because banks intervened to maintain the stability of freight rates.

The second stage (2020.6~2020.10) - the demand in the United States is released, and the freight rate of the US-West route is increased. On the one hand, the market supply and demand in the peak season, on the other hand, enterprises also have inventory demand, the market did not expect the United States line demand outbreak so fast, resulting in the United States line capacity is not enough, freight rises.

The third stage (2020.10~2021.2) - with the rise of freight on the European line, the container price ushered in a global general rise, and the situation of "one box is difficult to find" appeared. Due to the outbreak of demand in the United States in the early stage, a large number of containers have turned to the United States, and the supply of containers on major routes such as the European line is insufficient, which has pushed up global freight costs.

The fourth stage (2021.2~2021.4) - the traditional off-season, freight has been adjusted back.

The fifth stage (2021.4 to date) - market expectations change and speculation emerges. The sharp increase in the price of container transportation in the early stage has brought about changes in market expectations, and speculators have appeared in the container market, and the number of small boats in the port has increased, which has aggravated the port congestion, and the market has a certain imbalance.

Global car core shortage to car sales decline, affecting the supporting market

The global automotive industry has a serious lack of core, coupled with the implementation of comprehensive national six, domestic automobile production and sales have declined, affecting the sales of tire supporting markets. In the second half of 2020, the performance of the global auto market under the epidemic exceeded expectations, on the one hand, car companies did not expect a strong rebound in the auto market, on the other hand, the global consumer electronics market increased demand under the impact of the epidemic, resulting in chip production capacity transferred from the automotive industry. In 2021, semiconductor manufacturers in Japan, the United States and other places were forced to temporarily suspend production, and Malaysia's sealed test plant was also temporarily shut down by the epidemic, resulting in greatly limited chip production capacity. And with the continuous implementation of the six countries, commercial vehicle sales have declined. In the second half of 2021, domestic automobile production and sales were less than the level of previous years, down 7.53% and 11.09% respectively.

The resolution of negative factors in the industry

In response to the double reverse, domestic leading enterprises actively go to sea

Head tire enterprises actively respond to the double reverse investigation, put into production in a timely manner, and in recent years, the production and sales scale of overseas factories of Chinese tire enterprises has continued to expand. In 2015, the United States made a final decision on the double counter-investigation of passenger car and light truck tires exported by Chinese enterprises, and domestic head tire companies such as Cywheel tires, Linglong tires, Zhongce Rubber, Senkirin, Qingdao Double Star, etc., have set up factories at sea before and after 2015, effectively avoiding the impact of tariffs. As of 2020, the total output of overseas tire factories of Chinese tire enterprises has exceeded 51 million/year.

Chinese tire companies continue to expand overseas. Sailun Group, Shandong Linglong, Jiangsu General, Guizhou Tire, Qingdao Senkirin, Shandong Jinyu, Shandong Haohua and other enterprises have planned to build production capacity overseas, of which Sailun Group Cambodia plant has been officially put into operation on November 18, 2021. The global layout of Chinese tires is not decreasing.

The global tire consumer market is mainly in Europe, North America and Asia, and the domestic market is broad. Since 2017, global tire sales have averaged about 1.76 billion pieces/year, of which 2020 has declined due to the impact of the epidemic, and sales have rebounded in 2021. In 2021, Europe, North America and Asia combined accounted for about 84% of tire sales, which is the main market for global tire consumption, accounting for 28%, 24% and 32% respectively. Among them, Chinese tire sales account for a relatively high proportion of sales in 2020, accounting for about 20%, and there is enough capacity to digest space.

Tire enterprises and natural rubber prices are difficult to maintain high prices

Recent tire price increases are frequent, and it has experienced many price increases since 2021. In March and April, dozens of domestic tire companies issued price hike notices, some companies raised prices for a full range of products, and a few companies raised prices several times in the short term, with price increases ranging from 2% to 6%. Since August last year, domestic tire companies have experienced three price increases, respectively in August last year, October-November and December, of which the highest price increase can reach 7%.