The pressure has increased dramatically! The future development of the industry is still difficult

- Dec 06, 2018-

From November 13th to 15th, at the 19th National Rubber Industry Information Conference hosted by China Rubber Industry Association, Deng Yaxuan, president of China Rubber Association, said that China's rubber industry has shown a slow growth trend since the beginning of this year. The difficulties are still increasing. In the future, enterprise development will face more challenges.

In the report entitled "Analysis of the Economic Operation of China's Rubber Industry and Forecast of Development Trends", Deng Yazhen pointed out that in the first three quarters of 2018, the overall operation of the rubber industry had three major characteristics: First, the economic operation maintained growth, stable and slow, and low growth. The situation was further established. Second, the industry benefits were better than the same period of the previous year. The transformation and upgrading were effective and the quality of development was improving. Third, the difficulties in production and operation increased, the uncertainty increased significantly, and the downward pressure on the economy increased.

From the perspective of major economic indicators, the current industrial output value, sales revenue, and export delivery value increased by 6.46%, 6.70%, and 7.14%, respectively, and fell by 4.78, 7.85, and 11 percentage points respectively over the same period of the previous year;

The export rate (value) was 30.96%, up 0.19 percentage points; the profit growth was 31.63%, and the sales income margin was 5.75%, up 1.06 percentage points.

Deng Yazhen believes that the uncertainty in the fourth quarter of 2018 and 2019 will increase the rubber tire industry will face more challenges.

First, there are still many uncertainties in Sino-US trade frictions. The changes in the international economic environment have brought many adverse effects to the industry economy and market expectations, and the economic operation is facing downward pressure.

Second, the automobile production and sales have slowed down sharply. The adjustment of the logistics mode of “publicly reforming iron and public water” will make the rubber tire products market more gradual.

Third, the operating costs of the industry have shown an upward trend, squeezing corporate profits.

Fourth, the requirements for economic development of rubber products have changed from a rapid increase in the number of products to a continuous improvement in product quality, performance and stability, and higher requirements for the rubber industry.

Fifth, as the company's efficiency improves, the new capacity and the resluency of the resolved capacity will still exist, which will have a negative impact on the tire market expectations and confidence, and will also affect the future benefits of tire rubber enterprises and industry trends.

Deng Yaxuan pointed out that industry enterprises should pay special attention to the following aspects: First, pay close attention to and study the dynamic trend of Sino-US trade friction, assess the direct and indirect impact of trade protection measures on China's rubber industry, and take measures to actively respond to challenges.

Second, seriously investigate the structural changes in user industry demand, and pay attention to the new requirements brought by the development of related industries to rubber tires.

Third, deepen the structural reform of the supply side, maintain a basic balance between supply and demand, go to low-end production capacity, prevent the expansion of homogenization capacity; accelerate industrial restructuring through technological transformation and restructuring.

Fourth, actively maintain the smooth operation of the industry and promote continuous improvement of operational quality. Key enterprises should play the role of market stabilizers and maintain market stability. From manufacturing to R&D, from market share to improving independent innovation capability, to technology upgrades and product upgrades.

V. Pay more attention to the synergy between upstream and downstream industries and the whole industry chain. Guided by market demand, we will actively promote strong alliances, integrate and integrate, achieve mutual benefit and common development, and strengthen cooperation and integration with upstream suppliers and downstream distributors.

6. Grasping the strategy and path of transformation and upgrading, adhering to innovation-driven, green development, intelligent manufacturing, “One Belt and One Road”, aiming at the core weak links of the industry, striving to improve the ability of independent innovation, complementing shortcomings, improving quality, and putting up its own strength. To promote the core competitiveness and strive to promote the transformation of the rubber industry to high quality.

7. Actively cooperate with relevant government departments, give industry policy support, help enterprises solve difficulties, and promote stable and healthy development of the industry