On the evening of September 11, U.S. President Barack Obama announced the decision to impose a three-year punitive tariff on all cars and light truck tires imported from China. White House spokesman Robert Gibbs said that the punitive tariff rates on tires imported from China are 35% in the first year, 30% in the second year, and 25% in the third year. Previously, the US International Trade Commission proposed to impose a three-year punitive tariff on Chinese-made tires, with a margin of 55%, 45%, and 35% respectively. The Chinese Ministry of Commerce immediately expressed its strong dissatisfaction and resolute opposition to the US taking this serious trade protectionism.
According to Chinese statistics, at present, China's annual export of tires accounts for more than 40% of total production. In 2008, China’s tire exports to the United States amounted to approximately US$2.2 billion. If we reduce the production of half of American tires, it means that China will have 12% of the remaining tire capacity. According to the data, Shandong ranks first in domestic tire production, and half of the US tires affected by punitive tariffs are “made in Shandongâ€. Qingdao is also a major tire manufacturing area in Shandong Province. There are currently nearly 20 tire manufacturing companies in Qingdao. What impact will the tire protection program have on Qingdao's tire and rubber industries? What kind of measures will be taken by each tire manufacturing enterprise to deal with tire special security cases?
Huanghai Tire: annual loss will reach 30 million US dollars
“In recent years, the tires exported to Huanghai’s tires have an annual turnover of around US$100 million, and tires exported to the United States account for about 30% of the total export volume. The United States’ special protection case will cost US$30 million annually. The loss will have a great impact on the company,†Wu Guizhong, executive vice president of Qingdao Huanghai Rubber Group Co., Ltd., said in an interview.
The reporter learned that a large part of the semi-steel radial tires produced by Qingdao Huanghai Rubber Group Co., Ltd. are exported to the United States, and the United States special security case will cause great damage to Huanghai tires.
“At that time, we expected the tariff to be raised to 10%. I did not expect that the proportion of tariffs levied would be as high as 35%.†Wu Guizhong was formerly deputy dean of the Beijing Rubber Industry Research and Design Institute and also the China Rubber Industry Association. One member, on the outcome of the special security case, he felt that he expected the tariff rate to be so high but unexpected.
For the special security case proposed by the U.S. government, Wu Guizhong stated that they are ready. “The tire special protection case has caused great impact on Huanghai tires. In the next step, Huanghai tires will be adjusted to stop some of the production lines for the market. We will also actively develop domestic and foreign markets and further expand our market.â€
The reporter learned that the tires produced by Qingdao Huanghai Rubber Group Co., Ltd. are mainly exported to Europe, America, Africa and other places, and the tire protection case will have an impact on the US market.
At present, Huanghai Tire is actively developing other foreign markets. “We are developing well in the tire markets in Europe and Africa. At present, we are exploring the Australian market.†Wu Guizhong said, “While actively developing other foreign markets, we will further develop domestic market."
Huanghai Tire currently has a certain scale in the domestic market. It can sell about 1 million tires each year, and its annual turnover is about 200 million yuan. “The Tire Special Protection Project will inevitably cause excess capacity of tires, and will cause about 20% of Huanghai Tires. The remaining, therefore, Huanghai tires will also be adjusted according to the market to reduce production.†Wu Guizhong said, “We also need to increase research efforts on new products, improve the quality of tires and technical content, and increase the supporting of large trucks. â€
“Qingdao Huanghai Rubber Group Co., Ltd. strongly protested the tire special security case. In the protest letter to the US President Barack Obama issued jointly by the China Rubber Industry Association, the China Minmetals Chemical Products Import and Export Chamber of Commerce and the China Rubber Industry Association Tire Branch, etc., Qingdao Huanghai Rubber Group Co., Ltd. signed the letter,†said Wu Guizhong.
Double Star Tire: Each year will lose about 60 million yuan
Yan Liangguang, general manager of Qingdao Double Star Tire Industry Co., Ltd., said that before the tariff rate on tires exported to the United States was about 4%, it now grows to 35% and increases nearly 10 times. Double Star tires will lose about 60 million yuan each year. At present, the United States locally produces tires are high-end tires, the price is high, according to 35% tax rate, after the Chinese tires into the United States, the price will be higher than the United States local high-end tires, this way, will completely lose competitiveness .
It is understood that since March of this year, the tire products of Qingdao Double Star Tire Co., Ltd. have shown steady growth both in domestic sales and in exports. The production lines of all tire sub-factories are almost full-loaded, and Nissan’s tires like the Dongfeng tires have been broken. With 11,000 articles, it has created the highest historical record in 40 years since its establishment.
Previously, on September 9, 2009, when the Double Star Group held its 88th anniversary celebration meeting, Chairman Wang Hai of Double Star expressed their opinions on the special security case. He said that this approach by the United States is actually a kind of discrimination against Chinese companies.
The U.S. market currently accounts for two-thirds of the export share of double-star passenger cars, and Wang Hai also said that this policy will definitely have an impact on twin-star tires, but it will have little impact on all-steel tires.
"Double Star Tire will actively cooperate with industry associations to appeal and protect the legitimate rights and interests." The relevant person in charge of Double Star Tire said. The reporter learned that, in a letter of protest issued by a number of industry associations to the President of the United States, Mr. Obama, Qingdao Double Star Tire Industry Co., Ltd. also signed the letter.
It is understood that before the outbreak of the economic crisis, Double Star Tire has been actively looking for new markets, and markets such as South America, Europe, and the Middle East have been able to penetrate in depth. "At present, Qingdao Double Star tires will further explore the market, actively seek new markets and breakthroughs, to minimize the impact." Yan Liangguang said.
Xiyingmen Double Camel Tire: The Impact Is Not Clear
“Qingdao Xiyingmen Double Camel Tyre Co., Ltd. mainly produces tires for agricultural vehicles and tires for trucks, and there are few tires that are restricted in the tire special protection case. Therefore, the impact of the tariff increase in the special security case on the Xiyingmen double camouflage tires It is not obvious.†Wang Zhiqing, general manager of Qingdao Xiyingmen Double Camel Tyre Co., Ltd. introduced.
Qingdao Xiyingmen Double Camel Tyre Co., Ltd. mainly produces five series of motorcycle tires, agricultural vehicle tires, all kinds of light trucks and truck tires, nearly 500 varieties, annual production of 18 million motorcycle tires, 1 million truck tires The semi-steel radial tires used in cars and light trucks are rarely produced, and some types simply do not have production lines.
“The company exports a very small number of tires to the United States every year. The annual turnover is also between US$2 million and US$3 million, and the company’s total annual turnover is between RMB500 million and RMB600 million. The influence of the Xiyingmen double-clamp tires is not obvious,†said Wang Zhiqing. “Of course, we will also take corresponding measures, such as further expanding the domestic market, increasing research on new products, and improving the company’s core competitiveness. Tyre protection."
News analysis
Pre-bike stocks are expected to fall in the short-term
The rubber futures index has dropped from more than 20,000 points to more than 8,000 points. With the impact of auto-to-country and trade-in policies on stimulating domestic demand, it has stimulated domestic auto consumption and led to the development of the tire market. Since 2009, rubber futures Prices are rising all the way up to a maximum of nearly 20,000 points. However, what impact will the United States Government adopt on the adoption of the tire security plan as a raw material for the manufacture of rubber tires?
Many businesses eat a lot of food
From January to August 2009, China imported 1.15 million tons of natural rubber (including latex), which was an increase of 2.4% from 1.12 million tons in the same period of 2008. Since the beginning of 2009, rubber prices have also been rising. The Shanghai futures market has risen by nearly 100% from nearly 10,000 in the beginning of the year to nearly 20,000 in August.
According to relevant sources, this is mainly influenced by the country’s policy of stimulating domestic demand. In 2009, China implemented a stimulus plan of as much as 4 trillion yuan, which helped promote car sales to rise for four consecutive months, or at least 45%. The high sales of automobile sales data, and the rapid increase in demand for tires in the consumer market, have made the price of raw rubber also growing. Strong car sales data attracted investors' interest in rubber futures, and a large number of traders also began to purchase rubber.
The price drop is inevitable
On September 12, the reporter went to Qingdao International Rubber Trading Market. It is understood that the rubber stocks in the bonded area have greatly increased. "The adoption of the tire protection plan will result in a decrease in the trading volume of the tire industry and a drop in the price of rubber. As a result, the price of rubber futures will fall in the short-term, and some rubber traders with large quantities of stockpiled goods may also be trapped." The person in charge said. In August 2009, the total inventory of rubber in Qingdao Free Trade Zone exceeded 100,000 tons for the first time, an increase of approximately 25,000 tons from July.
“The tire protection case has adversely affected the tire market in China, and it is inevitable that rubber prices will fall. At the same time, exports will decrease, and some tire manufacturers will also reduce their production accordingly. In this way, the demand for rubber will be greatly reduced, and the inventory of rubber will also be reduced. There will be a backlog." In the bonded area, a trader said his concerns.
Short-term bad future of rubber futures
“The adoption of the tire protection project will cause short-term rubber futures to be bearish. It is expected to reduce RMB 1,000/tonne to RMB 2,000/tonne in the near future and will remain at around 17,200 yuan/ton to 17,400 yuan/ton.†Hai Tong Qu Tao, R&D director of the Qingdao Sales Department of Futures Co., Ltd., stated that “In the first half of the year, European and American auto industries were in a state of depression. In the second half of the year, as the financial crisis recovers, the European and American auto industries will also recover, and tire demand will further increase. The entire industry is developing. Fortunately, therefore, in the medium and long term, rubber futures are not bearish." Qu Tao analyzed. “The adoption of the tire security protection case will surely cause rubber futures to fall in the short term,†said Li Jinquan, Minister of International Trade of Qingdao International Rubber Market.
Tire stocks fell in the short term
"Such as double-money stakes, defective tires, double-star tires and other tire shares rose sharply in the previous period, and some consecutive daily limit, the tire through the special security protection case, will have a certain impact on the tire industry, is expected to tire shares in the short-term decline." Reporter interviewed Du Wende, an analyst at CITIC Wantong Securities, said that after the tire security protection case was passed, the impact of domestic listed tire companies was on the share of exports to the US market. The impact on tire companies that mainly export to the United States was greater, and exports of tire companies decreased. The volume declines, so that the tire stocks may be bearish in the short-term, have fallen, the rate of decline may also be about 5%.
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