China rubber sector growth to slow in 2015

China’s rubber sector will experience slower growth in 2015, China Rubber Industry Association Chairman Deng Yali said during her speech at the recent 2015 China Rubber Conference in Guangzhou.

In her comments, she mentioned output, export volume and export value will slow down in 2015.

“However, the output of segments with high added value and great market potential is expected to show high increase,” Ms. Deng added, singling out steel wire-braided rubber hose — production of which is likely to grow 32.4 percent to 490 million meters — against a backdrop of a 3.6-percent rise in rubber hose overall.

Ms. Deng said the rubber sector had a 0.1-percent profit growth last year, compared with an 18.5-percent increase in 2013. The tire segment showed a 4.4 percent profit drop.

“It’s worth noticing that domestic tire makers had a 9.7-percent profit drop last year, while foreign-owned companies delivered a 16.7-percent profit growth,” Ms. Deng said.

The rubber sector reported 1.5-percent revenue growth in 2014 compared with 2.7 percent in 2013, rising to $161 billion.

Tire segment revenue has been falling for two consecutive years, she said, even as output is growing. Production rose 6.2 percent to 562 million units last year.

The export value of China’s rubber sector grew 7.4 percent in 2014, compared to a 0.8-percent rate in 2013. The tire segment saw a 22.6-percent rise in export volume to 4.4 million metric tons but a mere 3.5-percent rise in export value, according to Ms. Deng.