China tire inventory higher in H1’ 2014
Stock of China’s 47 tire manufactures is estimated at 18.54 billion yuan, taking 19% of total sales value, statistics from China Rubber Industry Association showed.
Considering 20% decrease of tire price, analysts said China’s inventory actually increases 20%. Stockpile in most tire manufactures has reached one and half month production, reaching historical high. There are 10 tire manufactures having over 30% of inventory rate, amongst, three of them surpassing 90%, which would heavy press on tire sales in the second half year of 2014.
Due for falling rubber price, China’s tire producers also cut tire prices, but it seems that 15% of decrease is much higher than rubber price’s fell, which further slap tire makers’ profit.
(By Amanda, mol@tireworld.com.cn)
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