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What Are The Challenges Of Motorcycle Radial Tire Exports?
Aug 31, 2017

What are the challenges of Motorcycle Radial Tire exports?
 Recently, the China Petroleum and Chemical Industry Federation released the first three quarters of the petrochemical industry economic operation report. The first three quarters, the domestic Motorcycle Radial Tire market prices were stable, Motorcycle Radial Tire export prices fell more.
    In the first three quarters, the average price of passenger car tire exports was US $ 2507.9 / tonne, down 12.7% year on year; the price of passenger car tires was 2031.0 US dollars / ton, down 13.5%; engineering Motorcycle Radial Tires (rim diameter greater than 61 cm) export price of 2574.3 US dollars / ton, down 9.4%.
A currency depreciation caused by rising costs.
    Although, the devaluation of the renminbi for most of the sales rely on the export of Chinese Motorcycle Radial Tires is a good thing. However, the RMB devaluation Motorcycle Radial Tire business to pay the cost will be higher. First, from raw material imports, increased raw material costs. External sales received after the actual sales are also reduced, more tightening profits. These are the devaluation of the currency for the Motorcycle Radial Tire export business challenges.
Two rubber prices fluctuate risk
    Rubber is the main raw material for Motorcycle Radial Tires, usually about 30% of production costs or even higher. To the recent listing of the two companies, for example, the first half of this year, natural rubber accounted for 29.12% of the total cost of GM shares, synthetic rubber accounted for 7.08%, while the triangular Motorcycle Radial Tires these two data totaled 41%.
    Shanghai Futures Exchange natural rubber futures closing price shows that in early 2011 the price of natural rubber close to 45,000 yuan / ton, after the shock down, and now the price of 15,000 yuan / ton. Although the trend has been declining, but by the international economic situation, natural conditions, alternative materials development and other factors, natural rubber prices in recent years showed a substantial volatility.
    Natural rubber price volatility will lead to increased pressure on the company's cost control, resulting in increased risk of gross margin volatility, risk of income volatility, risk of working capital occupancy and increased risk of fluctuation of inventory value. If the future continue to fluctuate significantly, or will have a certain impact on the Motorcycle Radial Tire business.
Third, rubber imports face more stringent institutional challenges.
    On July 1 began to implement the new standard of composite glue, closing the door of the compound glue imports. In this way, will exacerbate the global supply of natural rubber surplus, but not conducive to Jiaojia. In this way, it is difficult to achieve the purpose of improving the income of plastic farmers, but also make Motorcycle Radial Tire business is very hurt.
    At the beginning of this year, after the announcement of new plastic labels, international suppliers quietly raised the price of composite rubber, has begun to affect the Motorcycle Radial Tire production costs. Domestic composite rubber standards have been modified and implemented, mixed rubber as a substitute, favored by the import business.
    Next, the relevant state departments may be modified on the standard rubber mixture, the natural rubber ratio is limited to 50% or less. This will greatly enhance the cost of raw materials.
Fourth, Motorcycle Radial Tires "double reverse" the impact.
    The United States is China's major exporters of Motorcycle Radial Tires, the "double reverse" investigation of China's Motorcycle Radial Tire industry will cause a certain degree of impact. "Double reverse" investigation will be sold to the United States passenger and light truck Motorcycle Radial Tires (both semi-steel tires) the number of sharp decline, will make a large number of export motorcycle wall tires into the domestic market, so that the saturation of the domestic market Competition is more intense, especially the replacement tire market, will speed up China's Motorcycle Radial Tire manufacturing enterprises "going out" pace, by overseas factories to avoid the "double reverse" effect.
     More than in the United States, in November last year, Russia and Kazakhstan customs union on China's truck tire anti-dumping measures; the European Union, Brazil, India, Egypt and other countries and regions have also launched a number of anti-subsidy, anti-dumping investigations to the Chinese Motorcycle Radial Tire industry. This will undoubtedly adversely affect the export of Chinese Motorcycle Radial Tires.
    This year is the United States on China's steel tire "double reverse" the first year, the US dealers seize the opportunity to import large quantities of Chinese Motorcycle Radial Tires, ahead of stocking. This stage of export growth will not last long. 2017 "double reverse" on the Chinese Motorcycle Radial Tire exports will show a more concentrated show.