China’s truck and bus tire market embraces triple boons

A truck and bus tire producer said lately that domestic manufacturers have been operating at high capacity, even more than 30% of their capacity, since the beginning of this year.

The news had been proved by Zhang Hongmin, chair of Shandong Rubber Industry Association. He said that China’s truck and bus tire market has a good opening this year and major truck and bus tire producers have received a lot more orders.

Zhang attributed the swift growth in the truck and bus tire market to three elements:

First, the government put strict limits on illegal modification of cars as well as oversized and overloaded vehicles, which stimulated the sales growth of heavy trucks, hence drove the development of the tire market.

The good news won’t be consumed by the market until the middle of the year and will drive the before-market, said Zhang.

Secondly, raw material prices kept rising and distributors were encouraged to stock goods, which stimulated the sales of after-market.

The prices of some raw materials more than doubled since the end of last year, said Zhang. Rising tire price benefits the tire producers, globally, so it also benefits the industry.

Tire price hike has become a prevailing trend this year and distributors stock tires to prevent the price from growing higher.

Thirdly, Chinese tire producers won the anti-dumping and anti-subsidy appeal in the U.S.

The good news will apparently boost the exports of China’s truck and bus tires and ease the pressure of domestic sales.

Before that, many tire exporters stopped exporting because of the case. Currently, all the export activities are resumed.

As a result, good news from the policy, export and after-market will be enough to boost the sales of truck and bus tires in China.