Following the US International Trade Commission’s ruling that China’s tire products have caused market disruption in the United States’ domestic industry, Brazil has recently raised anti-dumping “soldiers†for Chinese tire exporters. Some analysis pointed out that China's tire listed companies may be affected.
According to the 2008 annual report of the relevant listed tire company, the largest proportion of export revenue to main business income is S-Gatto, which is 69.19%; this value of Aeolus shares is 34.19%; this value of Qingdao Double-Star is 24.25%. The proportion of tire A is the smallest, which is approximately 18.95%. However, it is worth noting that the above-mentioned export revenue is all annual export revenue of the company. The impact on the company should be judged based on the actual export country of the company.
In April this year, the United Steel Workers Union of the United States filed a trade lawsuit against Chinese tire manufacturers under article 421 of the U.S. Trade Law, stating that Chinese enterprises’ unfair competition has achieved a dramatic increase in exports of U.S. car and truck tires for 4 years, resulting in U.S. workers Unemployed. In the indictment, the Steel Workers Union demanded that the number of passenger tires imported from China be reduced by more than half. It is understood that in the past five years, the United States’ tire imports have increased nearly twice, while its domestic consumer tire production has shrunk by more than 25%. On June 18th, local time, the US International Trade Commission issued an affirmative damages ruling on the above-mentioned Chinese passenger car and light truck tire special security case.
Also on June 18th local time, the Brazilian Foreign Trade Commission decided to impose anti-dumping duties on passenger and truck tires imported from China. In the future, it may impose anti-dumping duties on light-duty tires imported from China. In the past six months, Brazil has imposed a “temporary†anti-dumping tariff of US$1.33 per kilogram on Chinese-made 20, 22, and 22.5-inch passenger and truck tires. The decision made on the 18th formalized this anti-dumping tax and was valid for 5 years. According to Chinese manufacturing companies, the anti-dumping tax is divided into three levels of $1.12, $1.42, and $2.59 per kilogram.
United Securities analyst Yao Hongguang said in an interview with reporters: “The United States and Brazil made a similar ruling that domestic tire companies will be affected to varying degrees, but those companies with large export volumes are also relatively affected. Big."
In 2008, China produced 170-180 million tires, half of which were exported. The United States is China’s largest exporter of tires. China’s total annual tire exports to the United States amount to 46 million, and sales revenue reaches US$1.7 billion. As the main source of profit for domestic major listed tire companies, the national sales of all-steel radial tires in 2009 will reach about 57 million, of which 30% will be used for export. The profit contribution of this part of export products is slightly lower than that of domestic replacement products. But higher than the domestic supporting products.
In an interview with the reporter, Qingdao Double Star Secretarial Wang Xingyue said: “The company currently does not have too many tires exported to the United States, and its gross margin level is not too high. It is not yet possible to predict the impact of this trade lawsuit on the company.â€
Yao Hongguang told reporters: “In fact, disputes between China and the United States on tire exports have continued for a long time, and dumping should not be established, because after all, China’s human cost is far lower than that of the United States, and the price advantage is normal. If the United States finally starts anti-dumping, Chinese tire companies do not have many choices but can only make complaints, but there are many complaints and they may be delayed for a long time."
However, the United States has not yet completed the final ruling procedure. It is understood that the U.S. International Trade Commission will propose a trade remedy to U.S. President Barack Obama at the end of June and will hold a hearing on July 9 to submit the sanction program to the United States on September 2 after listening to opinions including China. The White House, Obama will make the final decision on September 17 at the latest. It is worth noting that the former President of the United States Bush dismissed all applications for the 421-term lawsuit during his term of office.
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