China’s tire producers perform well in Jan.-May
China’s key tire producers operated well since the beginning of this year and resumed two-digit growth.
China Rubber Industry Association has released the operation of the industry in Jan.-May.
In the first five months, China’s key tire producers realized output value of 73.64 billion yuan, up 10.70% year on year; and their sales revenue amounted to 68.09 billion yuan, up 10.66%.
The increases in output value and sales revenue are related to the output and rising price.
Driven by the wave of price lifting in the first quarter, most large domestic tire producers increased output and raised prices.
China’s tire output in 2017 is expected to grow 4.1% from 2016.
Moreover, tire export also boosted the industry.
In the first five months, China’s tire export rate was 34.09%, growing 3.3 percentage points from the 30.78% in the same period last year.
However, the lives of tire producers didn’t improve much.
As the environmental protective regulations became stricter and the pace of de-capacity accelerated, the entire industry is under reshuffle and reform.
Therefore, it is unlikely for China’s tire industry to keep two-digit growth for long.
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