Tire Manufacturers in Difficult Time
2008-09-08 Source：english.chinabuses.com
According to the China Rubber Industry Association, in the first half of this year, China's tire industry experienced an unexpected slowdown as exports fell due to the slumping global economy and rising costs of raw materials. Statistics from Chinese Customs show that in the first half of the year, 160 million units of tires were exported from China, valued at $3.94 billion, rising 4.6 percent and 22.1 percent respectively from the same period last year. However, the growth of the export volumes and revenue fell 17.6 percent and 18.6 percent respectively.
Although tire output and sales growth was relatively strong, profits fell sharply, mainly because the prices of raw materials, especially natural and synthetic rubber, have surged, eating into companies' profits. It also warned that if rubber prices do not ease, one third of the tire producers would be pushed into the red by the end of the year.
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