Special Report: China's Natural Rubber Market in 2012

Part Three. Key economic indicators forChina’s rubber industry in H1

1. The domestic rubber industry registered moderate growth in the first half of this year.

Industrial output value of the domestic rubber sector gained 6.97% year on year in the first six months of 2012, with sales revenues up 6.67% from the same period of last year. Specifically, output value and sales revenues of the tire sector grew 6.47% and 6.3%, respectively, while that of cycle casing tire sector gained 4.99% and 7.43%. The output value and sales revenues of rubber hose and rubber tape industry rose by 14.1% and 11.36% separately compared with the same period of 2011.

2. Tire production picks up momentum

China’s tire output increased 2.59% year on year in the first half of this year. Specifically, radial tire production expanded by 3.13% year on year, motorcycle tire output gained 6.22% from the same period of last year, while output of bicycle tires fell 2.97% year on year.

3. Export growth slows in H1

The industry managed to post an 11.2% increase in export value in the first six months of this year, but the growth rate was still lower than that logged in the same period of 2011.

The value of tire exports during the January-June period jumped by 11.29% year on year, while that of cycle casing tire sector went up by 21.92% from the corresponding period of last year.

4. Profitability continues to improve

Rubber firms have been enjoying constantly improving profitability since the beginning of this year.

Specifically, profit margin of the tire segment reached 3.94%, up 1.23 percentage points year on year, while that of the cycle casing tire sector came to 7.15%, up 1.3 percentage points year on year. The rubber hose and rubber tape segment registered a profit margin of 6.43%, up 1.55 percentage points.

(Contributed by Huo Bing, vice general manager of Yunnan Gaoshen Rubber Co; edited by Olivia, olivia@tireworld.com.cn)