China's tire export rebounded sharply in June 2020, far beyond expectations

Data show that in June, the export volume of Truck and bus tires (40112000) increased by 21.39% month-on-month, and that of passenger tires (40111000) increased by 50.86% month-on-month. The unexpectedly large rebound, to the foreign trade export injection of new expectations.

Since mid-to-late March, public health events have spread rapidly around the world and most countries have adopted restrictive measures. For Chinese tires, the export volume of the affected countries accounts for more than 90% of the total export volume, especially in Europe, North America and Asia. In order to cope with the crisis, foreign tire businesses to cancel and delay orders, orders of domestic tire enterprises generally fell 2-5%, a small number even more than 50%.

However, with the effective control of public health incidents in some overseas regions and the gradual recovery of the economy, The export situation of China's foreign trade has improved, and the export volume of China's foreign trade continued to improve in May and June. As the first country to resume work and production, China does not rule out the possibility of replacing exports to other countries, and the substitution effect will continue to support China's export growth in the short term. In addition, the current low price advantage of Chinese tires is significant, which also forms a certain support for China's foreign trade export.

Data shows that the export volume of Truck and bus tires of China in June was 255.41 thousand tons, with a month-on-month increase of 21.39% and a year-on-year decrease of 19.49%. The export volume of passenger tires was 7,145.33 thousand tons, with a month-on-month increase of 50.86% and a year-on-year decline of 26.64%. From January to June, the export volume of China truck and bus tires was 1371.83 thousand tons, down 18.47% year-on-year. The export volume of passenger tires was 806.87 thousand tons, down 22.39% year on year.

In June, China exported 255.41 kilotons of truck and bus tires, of which the registered place in Shandong province is still the first, accounting for 69%, accounting for little change. The registered place in Zhejiang Province is the second, accounting for about 10% of the total export volume, and the registered place in Liaoning Province is the third, accounting for about 5% of the total export volume.

At the same time, the export of passenger vehicle tires 145.33 thousand tons, of which the registered place in Shandong province is still the first, accounting for 73%, accounting for a stable proportion, Jiangsu province is the second, accounting for about 6% of the total export volume, Zhejiang province is the third, accounting for about 6% of the total export volume.

In June, China exported 255.41 kilotons of truck and bus tires, of which the registered place in Shandong province is still the first, accounting for 69%, accounting for little change. The registered place in Zhejiang Province is the second, accounting for about 10% of the total export volume, and the registered place in Liaoning Province is the third, accounting for about 5% of the total export volume.

At the same time, the export of passenger vehicle tire 145.33 thousand tons, of which the registered place in Shandong province is still the first place, accounting for 73%, accounting for a stable proportion, Jiangsu province is the second place, accounting for about 6% of the total export volume, Zhejiang province is the third place, accounting for about 6% of the total export volume.

From the perspective of different countries, In June China's foreign trade exports of 40112000 new inflatable tires 255.41 kilotons, of which the number of exports to Saudi Arabia jumped to the first place, the proportion of exports increased, accounting for about 9% of the total exports; The United States slipped to second place with a steady 8 percent share of exports.

Compared with 40111000 new inflatable tires, the export of June 145.33 kilotons, the UK topped the list, accounting for 9% of the export, the share of the increase. Saudi Arabia was second with 6 per cent.

In recent years, the United States, The European Union and other countries continue to implement trade frictions with Chinese tires, and the Share of European and American markets in The Export market of Chinese tires is shrinking. At the same time, the participation and activity of Chinese tires in the "One Belt And One Road" countries along the road are constantly improving. American and American tire export trade in China's core position, is gradually transferred to the "One Belt And One Road" countries along the market.

The export trade mode of tire is mainly general trade and import processing trade, among which the export volume of import processing trade is the largest, accounting for 67% of the export volume of truck and bus tires and 74% of the export volume of passenger tires respectively. It is followed by general trade, which accounts for 30% of the export volume of truck tires and 24% of passenger tires.

On the whole, the global economy is gradually recovering in some regions, and China's tire export shows a strong rebound trend, and the trend is expected to continue to pick up. However, it cannot be ignored that the strong rebound trend is still about 20% less than that of the same period of last year, the external environment is still relatively uncertain, short-term export resilience remains, but long-term export situation is still severe. The overseas demand for resuming production has completely recovered, and the export substitution effect or in the short term will continue to support China's tire export. Coupled with the stimulus of China's tire price advantage, China's export is still showing a positive trend in the short term. Overseas demand has recovered, but not yet. On the one hand, public health events in the United States, Brazil, Mexico, India and other countries are still in the outbreak stage, and there are great uncertainties in the economy. On the other hand, public health events in South Korea, Japan and other countries are gradually improving, but economic recovery still needs a long event. In the long run, China's export situation will remain severe and complex due to many unstable factors in the external environment and the impact of trade frictions.