What is included in the Chinese tire market

China's tire market

1, tire production capacity, output and meridian conversion rate

According to statistics, there are about 80 tire factories in the country with a total production capacity of about 1.5 billion, of which the semi-steel tire production capacity is about 960 million, and the full steel tire production capacity is about 270 million. In the production capacity distribution of all steel tires, Shandong accounted for 54%; In terms of semi-steel tires, Shandong's production capacity accounted for 48%. There are A total of 9 listed companies in the tire industry in the A-share market, of which 5 are from Shandong (Linglong Tire, Cylun Tire, Triangle Tire, SenQilin, Qingdao Double Star). Therefore, when studying the consumption of natural rubber, it is necessary to pay attention to the production trend of tire enterprises in Shandong Province and the disturbance factors to production.

China's tire production reached its peak in 2014, the phenomenon of overcapacity is serious, and the environmental pollution caused by tire production is serious. Since 2015, China opened the supply side reform of the tire industry, the central and local governments have introduced policies to curb production capacity, encourage mergers and acquisitions and backward production capacity withdrawal, and significantly accelerate the pace of tire enterprises. In April 2021, Shandong Province issued the "Three Resolute" action Plan for the Implementation of the Province (2021-2022) "proposing that by 2022, all steel radial tire enterprises with an annual output of less than 1.2 million and semi-steel radial tire enterprises with an annual output of less than 5 million will be integrated and withdrawn (involving 5.56 million full-steel tires and 25.61 million semi-steel tires of 18 tire enterprises). The elimination of backward production capacity in Shandong Province has great significance for the domestic tire industry.

Meridian rate is one of the important indicators to evaluate the technical level of tires in developing countries or regions. Since the second half of the 20th century, radial tires have gradually replaced the bias tire market. Radial tires require higher production technology, so the meridian rate can reflect the technological progress of tires from the side. In developed economies such as Europe, America and Japan, the transit rate of passenger car tires has reached nearly 100%, and the transit rate of truck tires has reached more than 90%. From the point of view of China's situation, according to the data of the China Rubber Industry Association, China will achieve a tire meridian rate of 94% in 2020. According to the "14th Five-Year" development plan released by the China Rubber Industry Association, by the end of 2025, China's tire meridian rate planning target is 96%.

2, full steel market and semi-steel market

All steel tires are mainly used in commercial vehicles, is China's tire manufacturers earlier layout of the field, production capacity of more than 50% of the world, from the proportion of heavy truck production, all steel tire export data can be seen that domestic all steel tires have advantages in the world. The development of the whole steel tire market is closely related to China's economic structure, real estate projects and infrastructure projects to drive the demand for building materials and industrial production, and then bring a lot of transportation demand, led to the consumption of trucks, promote the development of the whole steel tire market. In the past, when the real estate development investment maintained a high growth rate, the production of trucks also increased, promoting the consumption of the whole steel tire market, ushering in an important turning point in real estate investment in 2021, the domestic economy has moved from a high-speed growth stage to a high-quality growth stage, which means that the real estate investment driven economic model will come to an end in the future. And a large number of traditional infrastructure construction projects have met most of the public demand, domestic cargo transport is shrinking, then the corresponding domestic steel tire market may be difficult to continue to maintain a high growth rate in the future.

The semi-steel market is weaker than the full steel market. Semi-steel tires are mainly used in passenger cars, and the demand for passenger cars is related to residents' income and living standards. According to OCIA, the growth rate of global auto sales is leveling off, and the space for subsequent growth of car ownership per 1,000 people in European and American countries is limited, while domestic is different. China's car ownership has increased year by year, reaching 302 million in 2021, the absolute number is higher, but China's thousand people's ownership is only more than 200, compared with Europe, the United States and Japan and other developed countries 600-800 thousand people's ownership, is still a young car market, the follow-up growth space is larger, will also provide more incremental for the semi-steel tire market. At present, about 70% of the market share of China's car tire market is occupied by foreign and joint venture tire companies, local brand products do not have much advantage, brand influence needs to be further improved, so as to obtain better development.