1. The rubber industry's economic operation remains stable
In 2018, the economic operation of China's rubber industry remained generally stable. Due to the decline in domestic automobile production and sales, the adjustment of logistics and transportation methods, the rubber tire products market has been affected accordingly. According to statistics, China Rubber Industry Association expects main member companies' main business income to grow by about 5% year-on-year, profits increased by about 25% year-on-year, export delivery value increased by about 8%, and sales revenue margin was around 5%. Among them, the tire industry is basically in a stable state due to the annual raw material prices. The costs of labor, energy and environmental protection are basically controllable. The internal and external market rigidity guarantees the basic production capacity. The appreciation of the US dollar has improved the export earnings. The overseas factories have good returns. The base is relatively low, although the tire production is basically the same as the previous year, but the expected benefits are better than the previous year.
2. International trade frictions increase the difficulty of export
Since March 2018, Sino-US trade conflicts have intensified. Almost all products in China's rubber products industry chain have been included in the US 200 billion US dollar taxation list. Although China and the United States reached an agreement to suspend tax increases before the end of the year, they also exported rubber products for China. Add variables. Europe and the United States are important markets for China's tire export. On September 5, 2018, the US Department of Commerce issued the first annual administrative review of the anti-dumping investigation on passenger and light truck tires in China. The mandatory tax rate for responding companies and separate tax rates was 73.63. %, more than 6 times higher than the original anti-dumping margin rate; the European Commission launched a “double-reverse” investigation on new tires and retreaded tires for Chinese passenger cars in 2017, and officially announced anti-dumping on October 22 and November 12, 2018 respectively. The countervailing final ruling imposed a fixed tax of 42.73-61.76 euros on each of the truck and bus tires exported to the EU. In addition, on March 30, 2018, India also announced a countervailing investigation on new inflatable passenger car tires imported from China. The increase in international trade friction has increased the export market variables of China's rubber products.
3. Rubber industry mergers and acquisitions are more active
Due to the changes in the domestic and international market environment, the merger and reorganization of rubber enterprises in 2018 has become more active, and bankruptcy has occurred frequently. The reform of the supply side of the rubber industry has continued to deepen. On July 6, Double Star Group acquired a 45% stake in Kumho Tire for approximately 3.9 billion yuan and officially became its controlling shareholder. The merger is expected to bring a multiplier effect to both parties. Sailong Group and Gubo Company cooperated deeply. On September 26, it announced that it will purchase 35% equity of Qingdao Geruida for 220 million yuan, and another 65% of its shares belong to Cooper. On December 3, Fengshen Co., Ltd. announced that it will transfer the entire equity of Huanghai Rubber and will no longer host 100% equity of Guilin Beili Tire. The company's future development will be easy. In addition, there are many companies in Shandong that are engaged in mergers, acquisitions or custody, such as the acquisition of Longyue Tire by Huadong Rubber and the national wind of Huasheng Rubber. At the same time, some enterprises have bankruptcy liquidation, overall auctions, etc. due to problems such as market and capital chain, such as Shandong Hengyu, Ogo Rui, Shandong Yongtai, Chongqing Hengxu Rubber Products, Zhejiang Chen Rubber, Henan Zhongwin Rubber and other companies. With a small number of enterprises with small scale, poor product quality and low brand awareness being eliminated, China's rubber industry industry concentration will be further improved.