Shandong tire export kept growth

In August, there were 21,245,000 units of pneumatic tires exported from Shandong Province, yearly increasing 2.9%, with 5.37 billion yuan of total tire export, yearly rising by 4.4%. And average tire price was 252.8 yuan, up by 1.4%.

Statistics in the past eight months showed five features as following:

1、EXPORT PRICE SWINGS HIGH

Tire export volume from Shandong Province slowed to yearly lowest in February 2018, due to Chinese Spring Festival. After that, tire export volume swang to climb up to yearly highest in July, and monthly fell 4.5% down in August.

Tire export price created historical high in March since January 2015, and then declined down in April and May. Price climbed back from June, and kept high-level swinging.

2、PROCESSING EXPORT TRADE WAY

In August, there were 13,244,000 units of tires exported by processing trade way, yearly increasing 18.6%, taking 62.3% of Shandong tire export in all at the same time.

In the same period of 2018, there were 7695,000 units of tires exported by general trade, yearly increasing 84.6%, taking 36.2% of total tire export in Shandong Province.

3、70% EXPORT FROM PRIVATE COMPANIES

In August, there were 15,959,000 units of tires exported from Shandong Private companies, yearly increasing 3.4%, and taking 75.1% of total tire export in Shandong Province.

At the same time, there were 3,251,000 units of tires exported from foreign-investment companies, yearly reducing 9.4%, taking 15.3% of total tire export; and 2,036,000 units of tires from state-owned companies, increasing 25.3%.

4、EU and USA ARE MAIN EXPORT MARKET

In August, there were 5,770,000 units of tire exported to EU from Shandong Province, yearly up 7.9%; 1,933,000 units of tires exported to USA, yearly up 6.9%; 1,122,000 units of tires exported to Mexico, lifting up 45.2%; 996,000 units of tires exported to ASEAN, reducing 1.4%; 701,000 units of tires exported to Brazil, declining 33.4%.

5、PASSENGER TIRE EXPORT ACCOUNTS FOR 60.4%

In August, there were 12,835,000 units of passenger tires exported from Shandong Province, yearly increasing 3.1%, taking 60.4%.

At the same time, there were 5,245,000 units of truck tires, increasing 1.7%, and 1,660,000 units of motor tires, climbing 11.5% up.

Analysts said there were two reasons as following:

Firstly, demand increased in traditional market, and new demand were developed in emerging market.

Since 2018, vehicle growth in EU auto market obviously increased, which lifted tire demand.Statistics showed that passenger car registration yearly increased 4.7% in June, and new car sales climbed 2.5% in EU market.

At the same, tire export to EU market from Shandong Province increased 8.4% in August, contributing 71% of tire growth in Shandong tire export.

Besides, China's "One Belt and One Road" policy helped Shandong tire companies develop emerging market.

In August, tire export to Saudi Arabia, Canada, Russia, Venezuela increased 11.3%, 30%, 14.8% and 100%.

Secondly, surging raw material price pushed production cost up. 

Although rubber price kept stable since the second half year of 2018, carbon black price kept high level swing, which led tire price rising.

Statistics showed that recently, carbon black price in Shanxi Province, Hebei Province etc. lifted 200 yuan/to , year-on-year rising by 2%. And carbon black price in Shandong Province yearly rose by 14.5 percentage to 7440 yuan/ton, still at historical high level in August.

Besides, rubber acid companies also lifted price, due to Chinese green environment protection, which limited rubber acid production in the past year.

In that case, tire export price in Shandong Province kept growing in recent months.