The prosperity of the tire industry continues to rise, and Chinese tire companies are seizing the global C position. On June 5, Brand Finance released the list of the top 25 global tire companies. Against the backdrop of challenges faced by global tire giants, China has the largest number of tire companies on the list, including well-known companies such as Sentury, Triangle Tire, and Linglong Tire. At the same time, data from the General Administration of Customs showed that from January to April 2023, China's cumulative exports of rubber tires increased by 11.8% year-on-year, and the export value increased by 20.4% year-on-year; data from the National Bureau of Statistics also confirmed this trend. In the first four months of this year, China's total tire production increased by 11.4% year-on-year, and exports increased by 10.8% year-on-year. The tire industry has ushered in a comprehensive high-prosperity stage, with strong demand in the international and domestic markets.
Technological innovation leads the development of the industry, and green and environmentally friendly tires have become a new favorite
At the Cologne International Tire Show held in Germany recently, Guizhou Tire brought the latest European second-generation TBR upgraded products and technological achievements, and Linglong Tire launched the industry's first green and environmentally friendly tire, which uses up to 79% of sustainable development materials. Technological innovation is leading the high-quality development of the tire industry, and green and environmentally friendly tires have become a new direction for the development of the industry. At the same time, my country's tire companies are accelerating their international layout. The overseas business revenue of companies such as Senqilin and General Shares accounts for more than 70%. They enhance their global market competitiveness by building factories overseas and promote high-quality development of the industry.
The price increase of raw materials has pushed up tire prices, and the industry's profitability is expected to increase
Since February, the price of natural rubber has continued to soar, and has now exceeded 14,000 yuan/ton, a new high in the past two years; the price of carbon black is also on an upward trend, and the price of butadiene has risen by more than 30%. Affected by the price increase of raw materials, the tire industry has ushered in a wave of price increases since this year, including Linglong Tire, Sailun Tire, Guizhou Tire, Triangle Tire and other companies have announced price increases. At the same time, due to the strong demand for tires, many companies have strong production and sales, and their capacity utilization rate is high. Under the dual benefits of sales growth and price increases, the profitability of the tire industry is expected to increase. Tianfeng Securities Research Report also pointed out that the tire industry has ushered in a stage where the short-term, medium-term and long-term logics are all upward, and it is expected to usher in a cycle of valuation and profit recovery and increase in the future.
With the rapid growth of the global tire market, China's tire industry has ushered in a period of high prosperity. Technological innovation and green environmental protection have become new driving forces for the development of the industry, while factors such as international layout and rising raw material prices have also promoted the improvement of the industry's profitability. Driven by multiple favorable factors, China's tire industry is expected to further enhance its competitiveness in the global market and achieve high-quality development.
This article comes from: FinancialWorld
Post time: Oct-09-2024