According to statistics from Qingdao Customs, in August 2018, Shandong Port exported 21.245 million new pneumatic rubber tires, up 2.9% year-on-year; the total value of exports was 5.37 billion yuan, up 4.4%; the average export price was 252.8 yuan per piece, up 1.4%.
Main features of tire exports at Shandong Port in August this year
(1) The fluctuation of export volume rose to the second highest in the year, and the average export price remained at a high level.
In February this year, affected by the Spring Festival factor, the export volume of tires in Shandong Port fell to the lowest point in the year. Since then, the fluctuation has increased. The export volume in July was the highest in the year. The export volume in August decreased by 4.5% from the previous month. The monthly average export price reached a new high since January 2015, and continued to fluctuate continuously in April and May. After the rebound in June, it remained at a high level. In August, the average export price rose slightly by 0.8%.
(2) Processing trade is mainly exported, and general trade exports have increased substantially.
In August, Shandong Port exported 13.244 million tires by processing trade, a decrease of 18.6%, accounting for 62.3% of the total export volume of Shandong Port tires in the same period. In the same period, the export volume was 7.695 million by general trade, an increase of 84.6%, accounting for 36.2%.
(3) The export of private enterprises exceeds 70%.
In August, private enterprises exported 15.959 million tires from Shandong Port, an increase of 3.4%, accounting for 75.1%. In the same period, foreign-invested enterprises exported 3.251 million, a decrease of 9.4%, accounting for 15.3%; state-owned enterprises exported 2.036 million, an increase of 25.3%.
(4) The EU, the United States, Mexico, ASEAN and Brazil are major export markets.
In August, Shandong Port exported 5.77 million tires to the EU, up 7.9%; exported 1.933 million to the US, up 6.9%; exported 1.122 million to Mexico, up 45.2%; and exported 96,000 to ASEAN, down 1.4%; Exports to Brazil were 701,000, a decrease of 33.4%, which accounted for 51.8% of the total.
(5) The proportion of motorized passenger car tire exports exceeds 60%.
In August, the number of motorized passenger car tires exported by Shandong Port was 12.835 million, an increase of 3.1%, accounting for 60.4%. In the same period, the export of passenger cars or truck tires was 5.245 million, an increase of 1.7%; the export of motorcycle tires was 1.66 million, an increase of 11.5%.
The main reason for the increase in tire export volume in August
(1) The increase in demand for tires in the traditional export market superimposed on the continuous expansion of emerging markets and promoted the steady growth of tire exports in Shandong Province.
The EU is the largest tire export market in Shandong Port. Since 2018, the growth rate of new vehicles in the EU automobile market has increased significantly, which has increased the demand for tires. Data show that passenger car registrations in Europe rose by 4.7% year-on-year in June. In the first half of the year, sales of new cars in the EU increased by 2.5% year-on-year.
The overall recovery of the European car industry has benefited the tire manufacturing industry. The demand for tires in the region has been increasing year by year.
In August, Shandong Port’s exports to the EU increased by 8.4%, contributing 71% to the increase in exports of Shandong Port tires. In addition, thanks to the “Belt and Road Initiative” initiative and the continuous development of international emerging markets, the diversified market layout has provided strong support for the increase in tire exports at Shandong Port.
In August, the export volume of tires from Shandong Port to Saudi Arabia, Canada, Russia, Venezuela and other countries increased by 11.3%, 30%, 14.8% and 1 times respectively.
(2) The price of raw materials based on carbon black increased the production cost and pushed the export price of tires at Shandong Port to a high level.
It is understood that since the second half of 2018, although the international rubber prices tend to be stable, due to environmental factors, rectification, supervision, and restrictions on transportation, the upstream coking enterprises have implemented partial peak production, and the coal tar market is under the support of limited production. Maintaining high volatility, tire production costs remain high.
The data shows that the prices of carbon black in Shanxi and Hebei have been raised by 200 yuan per ton, which is more than 2%. In August, the average price of carbon black N330 in Shandong market was 7,440 yuan/ton, up 14.5 percentage points year-on-year. Market quotes are still at a high level.
In addition, the production of related auxiliaries has been limited and the production has been discontinued. The supply of domestic rubber auxiliaries has continued to be tight, and the production costs of enterprises have increased. The prices of non-rubber tires such as carbon black and rubber additives are high, which has become the main factor for the increase in tire export prices at Shandong Port.