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Tire makers feel deflated

By Li Fangfang (China Daily)
Updated: 2008-09-01 10:56

The tire industry has been the target of anti-dumping investigations conducted by more than ten countries, including the US, Australia, Brazil, Egypt, South Africa, and India.

The dumping allegations have included not only low value-added tires as motorcycle tires and bias ply tires, but also high value-added TBR (truck bus radial) tires, one of the dominant products in China's tire market.

Analysis from Shihua International Financial Information Co Ltd, a leading provider of financial information services in China suggests the China tire industry should reinforce the management and regulation of the industry and enhance the coordination and cooperation of the tire association, in order to ease the risks of trade barriers as well improve tire makers' capabilities to deal with the barriers.

Car sales are also slowing in China, the world's second-largest vehicle market, with July showing the lowest annual increase in two years as consumers delay purchases due to a fuel price hikes and slowing economic growth.

The slowdown in the automobile industry is likely to affect the tire industry within a few months, traders and industry officials said.

China is the world's biggest tire manufacturing base, with output in 2007 hitting 556 million units, occupying 18 percent of the international market.

Global tire heavyweights, including Michelin, Goodyear Tire & Rubber Co, and Bridgestone Corp, have all set up plants in China.

By the end of 2006, the foreign tire conglomerates had established 19 enterprises with 36 plants in China.

By 2010, the total tire demand in China is expected to reach 300 million units.

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