In 2015, under the pressure of the economic environment, more than 80% of domestic tire companies face financial pressure, business difficulties and the risk of failure.
On the one hand is the precarious capital chain. Tire enterprises loan new money through banks, and companies still use old loans, and then refinance new loans until one day the capital chain is completely broken. For example, Watson Rubber recently acquired by Shandong Hengfeng Rubber & Plastics.
On the other hand, the export of tires was blocked, orders were cancelled, and export-oriented companies suffered major setbacks.
Tire exports blocked, orders were cancelled, export-oriented companies suffered a major setback
In 2016, the US tires "double reversed" again. The U.S. Steel Workers’ Union and Titan International have submitted petitions to the US International Trade Commission and the U.S. Department of Commerce in hopes of sanctions on construction vehicle tyres from China, India and Sri Lanka.
At present, the performance of the domestic tire market is weak, most manufacturers have significant new inventory, and they generally have more than 30 days of inventory.
According to the monitoring data, the operating rate of semi-steel tires in domestic tire enterprises was 57.37%, a decrease of 6.59 percentage points from the previous quarter and a decrease of 4.4 percentage points year-on-year.
According to a zinc oxide manufacturer, according to his personal point of view, this year is the most severe for tire companies. Faced with many negative factors, whether or not it can continue to operate depends on how the company itself develops.
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