Ten Trends Of Rubber Industry In 2018

- Dec 21, 2018-

Time flies and time flies.In a blink of an eye, 2018 will be the end of the year.From enterprise capital operation to industry reshuffle acceleration...2018 is extremely unusual for people in every industry.

1.Trade war after trade war export environment is not optimistic

2018 is bound to be the most challenging year for China's rubber tire industry.On September 24, the trump administration announced a 10 per cent tariff on $200bn worth of Chinese imports.As a result, almost all common chinese-made tire products face additional taxes when they enter the U.S. market.In the fourth quarter of this year, the G20 summit between the heads of state of China and the United States brought good news. The two countries temporarily suspended trade wars, and Chinese products will not be subject to 25% tariff when entering the U.S. market.

In Europe, the European commission (EC) on October 23 imposed anti-dumping duties on imports of truck and bus tires from China.Tax products include both new and refurbished tires.According to the commission's decision, Chinese tire companies will pay 42.73 to 61.76 euros (333.7 to 482.3 yuan) in fixed taxes for each truck and bus tire exported to the eu over the next five years.

In addition, many countries, including India and Argentina, are eyeing the Chinese tire industry, 2018 industry export environment is not optimistic.

2.Industry capital operation to speed up the listing of many enterprises

3.Raw material prices fluctuate frequently fluctuate

In 2018, the price of natural rubber went down all the way. Despite ANRPC's repeated initiatives and the Thai government's continuous stimulus policies, it was difficult to reverse the downward trend of natural rubber and even fell to the low level two years ago.

Contrary to the price of natural rubber, the price of carbon black has been soaring. As India, the United States and other countries announced the shortage of carbon black, carbon black has become one of the most active raw materials in the industry.The fluctuation of raw material price undoubtedly increases the difficulty of enterprise management, and the changeable environment tests the wisdom of every rubber person.

4.Industry reshuffle accelerates auctions, bankruptcies and mergers and acquisitions

Although complete statistics are not available, the number of tire enterprises auctioned in the tire industry in 2018 is up to nearly 40, and there are more than 30 completely bankrupt tire enterprises.The rubber industry as a whole was listed in the breach of the implementation of the enterprise is actually more than 800.

Among the enterprises that went bankrupt in 2018, what made people in the industry feel sad and unexpected most was yongtai group, once one of the top 500 enterprises in China's chemical industry and the top 75 enterprises in the global tire industry.Followed closely behind, dongying local ogory tire, hengyu technology and other tire manufacturers, has announced bankruptcy reorganization.

In addition, mergers and acquisitions of domestic enterprises also continue to appear, in the first half of the year, shandong weifang east China rubber co., ltd. acquired heze cao county longyue tires.

5.Environmental supervision continues to force enterprises repeatedly recruit

In addition to stopping production and restricting production in heavy pollution days, some enterprises that failed to make corrections have also received huge fines from environmental protection authorities. On October 29, the environmental protection bureau of guangrao, dongying, shandong province, released information on administrative penalties for October, in which shandong zhongyi rubber co., ltd. was fined 5.13 million yuan for seven violations.In addition, chung jin rubber, the majority of tires, dongying sentai rubber and many other rubber tire enterprises in this year also paid a lot of environmental protection tuition.