Shanghai Tire Export QTY Down & Price Up in First Half 2017


According to Shanghai Customs statistics, in the first half 2017, Shanghai Customs District exported new rubber tires (tyres) totaling 18.511 million pieces, down 11.7% year-on-year (YOY); worth RMB 3.48 billion yuan, down 3.3% YOY; average export price at 188.2 yuan each, up 9.5% YOY.

Shanghai Tire Export Characteristics:
(1) This June alone, tire export from Shanghai reached 3.464 million, down 2.4% from May and down 6.2% YOY for the seventh consecutive month; average price at 183.6 yuan each, down 2% from May and up 14% YOY (see the chart below).

(2) In the first half year, the tire export reached 10.845 million pieces by processing trade mode, down 15.9% YOY, accounting for 58.6% of the total export; 7.618 million pieces by ordinary trade, down 5.4% YOY, accounting for 41.2%.

(3) Foreign-invested enterprises dominated the export by 12.97 million tires, down 14.8% YOY, accounting for 70.1% of the total export; private enterprises exported 3.293 million tires, down 2.4% YOY, accounting for 17.8%; state-owned enterprises exported 2.247 million, down 4.7% YOY.

(4) The EU was the largest export market, receiving 4.247 million tires, up 1.9% YOY, accounting for 22.9% of the total export; the export to the United States reached 3.064 million, down 11.7%, accounting for 16.6%; the exports to ASEAN and Japan were 1.044 million pieces and 765,000 pieces respectively, down 37.7% and 23.8%. In addition, exports to Mexico and Canada respectively reached 1.864 million and 817,000 pieces, up 3.4% and 14% YOY.

(5) Small passenger car tires topped in export quantity, bicycle tires decreased by two-digit. The exported tires for small passenger cars were 8.608 million pieces, down 2.7% YOY, accounting for 46.5% of the total export; average price at 199.2 yuan each, up 9% YOY. In addition, bicycle tires reached 5.114 million pieces, down 27.4%, average price at 13.7 yuan each, down 2.1%; motorcycle tires 1.447 million pieces, down 13.8%, average price at 47.7 yuan each, down 27.7%.

Causes of the YOY less export quantity:
(1) Some export markets were slack in sales, like Turkey and USA, as to reduce the demand for China tires.
(2) Shared bicycles increased in China with more tire demand, resulting in less export.

Considerable Problems:
(1) Defect in environmental protection is the big trouble of Chinese tire industry.
(2) China is improving tire label management, helpful to the industrial upgrade.

Source: ETCN