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  • 2009/7/21 Views:1438

Radial rate marked "the potential of line" for all-steel tire

   According to statistics from related departments, more than 70% of China's cargo transport and more than 90% of passenger transport are completed by road. This shows that the main transportations in China are trucks, passenger cars, so the all-steel radial tires for transportation business demand will be long and stable. If the radial rate of developed countries is close to 100% as the target rate, China's all-steel radial tire rate is less than 60 percent, still have some room for development. However, the radial tires rate is not the only indicator of the development of the industry, the development of all-steel tire should not blindly repeat a low level of the construction, only to improve technology, quality and brand, and it can be the real gold. 
 Radial rate increases fast   Road improvement is the foundation 
   China's all-steel tires production from 2002 less than 7million, in 2008 soared to 51 million, 27% annual growth rate has become the world's largest tire producer. All-steel tires production in 2008 occupied more than 40 percent of global production.
   The world's largest steel cord manufacturer Bekaert Belgium since 2004 for 6 times for heavy-duty truck tires for the Chinese radial of the rate of use in the field survey showed that China's rate of truck tires from radial's 2004 growth less than 30%, in 2008 nearly 60%, 4 years, an increase of almost 1 time, with 4 years in developed countries through the Europe and the United States through the course of more than 10 years to become mainstream products in the Chinese tire. Bekaert did a sample survey on radial tires rate, focused on China's part of the capital cities and coastal areas along the highway as well as some of the country. These cities are relatively more developed, and road conditions are more favorable to the use of radial tire, so radial rate is much higher than other parts of China. A recent survey shows that the radial rate of these areas has reached to 92%, shows that Chinese all-steel tires development is more dependent on the improvement of road conditions, especially the rapid development of highway traffic and cargo growth.    
   According to the report of the National Bureau of Statistics, by the end of 2008, China's highway mileage has exceeded 60,346 km. Nation plans in the next 15 to 20 years, and the country's highway network will be increased to 85,000 km, indicating that the application of all-steel tire will continue to have great potential for development.
n part of the market has been saturated.  Central and western parts have the potential
   The development of tire industry and economic development are closely related. In eastern these economically developed areas of China, road conditions are good, and very suitable for the use of radial, the use of radial tires in high-grade highways of these areas has been close to the level of developed countries. However, in the less developed central and western rural areas and the wider region, radial rate is also very low. The good news is that countries are making efforts to improve rural living conditions, and more investment will be used in such areas as infrastructure. If the road conditions have improved, all-steel tires in these areas may have a faster development. From a macroeconomic perspective, the investment in the future a longer period of time is still the main driving force of economic development in China, a large number of infrastructure facilities have to be constructed and improved, that will bring about substantial and sustainable transportation needs. 
   In addition, a series of incentive policies such as government subsidies, effective in stimulating the domestic consumption, that will promote the development of all-steel tire. An increasing number of drivers have known the advantages of all-steel tire, such as longer life and safety, and they are more willing to use all-steel tires, that will gradually increase the amount of all-steel tires. 
Regard the brand technology as most important. Do not blindly increase the capacity expansion 
   Since last year after the outbreak of financial crisis, due to the sharp contraction in demand on domestic and foreign markets, the Chinese tire enterprises operating rate has dropped significantly. Until January this year, the entire tire steel industry operating rate is less than 1 / 3. Benefited from the government to stimulate investment in large-scale plans, from April to May, the tire company resumed production quickly, and all-steel tire operating rate has been restored to normal levels of more than 85%. 
    However, because the majority of tires enterprises open up the production, from April to May, the Chinese steel tire has reached 5.5 million per month, while domestic demand and exports is estimated at about 5 million, the output growth rate higher than the tires demand growth, tire companies have been gradually increasing inventory, do not rule out the tire market in the near future the possibility of downward. Therefore, enterprises should not blindly increase the tire production, otherwise in the future will lead to a serious surplus of production capacity, and enterprises will be adversely affected. In addition, China has more than 70 radial tire manufacturer. Among them, there are about 40 all-steel tires producers, which reached an annual production capacity of 75 million. At present, domestic all-steel tires demand is less than 40 million, while exports more than 15 million to resolve, but there is still a large number of surplus production capacity. And the rapid growth of exports has also brought a large number of trade friction, so China's tire exports can not be unlimited growth. 
   Industry experts pointed out that the focus development of the all-steel tire is not to continue to expand production capacity, but should improve product technology and brand awareness. At home, the technology, quality and brand are the leader in the enterprise, through the integration scale, capital, reducing the waste of resources, rational utilization of resources in order to gradually raise the skill level of the whole industry and competitiveness. Relevant government departments can make similar restructuring of the steel industry the integration of planning policies to encourage and guide the tire industry mergers and acquisitions in an orderly manner so that ensure the healthy development of the tire industry.


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