The profitability of the domestic tire industry continued to rise

With the large-scale maturation and cutting of rubber trees planted in 2005-2008 in 2012, the supply of natural rubber has gradually become loose, and prices have entered a downward path; at the same time, the recent sharp drop in oil prices has driven down the price of synthetic rubber and the cost of tire manufacturing has fallen. According to industry estimates, in 2012, the profitability of the domestic tire industry will continue to grow.

According to the “2012-2016 China Tire Industry Development Trends and Investment Analysis Report”, at the end of March 2012, there were 521 tire industrial enterprises above designated size in China, and the total industry assets reached 299.58 billion yuan, a year-on-year increase of 15.65%.

In the first quarter of 2012, the domestic tire industry realized a main business income of 98.658 billion yuan, a year-on-year increase of 19.68%, and a total profit of 5.196 billion yuan, a year-on-year increase of 76%.

From January to March 2012, the output of rubber tire tires nationwide reached 197.5 million, an increase of 6.8% year-on-year. Among them, the production of radial tire tires reached 93.44 million, an increase of 5.97%, accounting for 47.31% of the country's total tire tire output.

Judging from the output of various provinces and cities, Shandong Province is the major producer of tire casings in China, followed by Jiangsu Province, Zhejiang Province and Guangdong Province.

In recent years, the domestic tire industry is faced with various problems, such as technical barriers and trade frictions such as tire “labeling method”. In the future, China's enterprises that can produce "green tires" will have to reach 50%, and 25% of the enterprises' "green tires" output will exceed the target of ordinary radial tires.