Tires and related industries into the golden period of development

To benefit from China's rapid economic development, infrastructure investment increasing, the rapid growth of the auto industry, the total highway mileage to the world's second car, as well as China's production of the explosive sales growth, the tire manufacturing business degree may be raised. At the same time, in recent years enjoy the exemption of 10% of the radial tire consumption tax, the abolition of the administrative examination and approval projects, such as tire with the support of preferential policies, China's tire industry developed rapidly. China Rubber Industry Association show that China is currently the world's fastest-growing tire market, the market size of about 80 billion U.S. dollars, the world tire market share of 9%.

There are bias tires and tire radial tire line two categories, compared to the radial bias tire with more advantages in the future radial replace bias tires will be a trend in China of meridian tires close to 70%, which is expected to In 2010 China's total output of tires will reach 630,000,000, the radial tire production will reach 530,000,000, of Meridian rate of 85%.

Meridian trend of strengthening demand for radial tire

At present, the radial tire market has become mainstream products, Europe and the United States, Japan and other developed countries car tire meridian rate of 100% load of meridian tires rate has reached more than 90% of the project meridian tires rate of about 70% over the next dominant radial and bias tires will gradually replace the tire industry in China is the trend of development. China's rate of meridian tires, only about 70 percent, by 2010 China will achieve the rate meridian of 85%, but with the world average of 90% of the meridian of the level of the rate gap remains.

China's auto industry on the meridian tires of a further increase in demand has promoted the rapid development of the radial tire. From 2000 to 2006 radial tire exports rose 5.9 times the tire exports in 2006 amounted to 83,760,000, tire exports amounted to 33,215,000,000 yuan, tire exports in 2006 accounted for tire production in the country's 42.35 percent. China's exports in 2006 radial 62,920,000, accounting for radial tire production was 45.4 percent, accounting for the country's tire exports to 75.12 percent, which shows that Chinese exports of tires, especially radial tire is very optimistic about the prospects for exports. If the tire to maintain the export growth rate of 7%, by the year 2010 will increase to 10,000 8247-9000. All-steel radial tire is divided into semi-steel radial tire and radial tire, which is mainly for all-steel radial truck tires, semi-steel radial tires mainly for cars or light truck tires. With the roads and the development of the automotive industry, high-performance tire of the increasing demand for radial truck tires accounted for the demand will gradually increase the proportion is expected within the next 10 years China's meridian tires of the truck market will continue to be in short supply.

Tire companies increase capacity growing

We believe that the tire business is subject to demand price increases and cost-push impact of the dual, and the strong demand and relatively stable but high in the Jiaojia in 2008 will continue, the ability to increase tire business growing. At the same time, domestic enterprises also face the export tax rebate from 13% to 5% of the adverse situation, domestic enterprises are expected to raise tire prices, in particular the shortage of all-steel radial tire in order to maintain an appropriate level of gross profit.

Chinese enterprises only in the local tire truck tires have a certain market share, domestic and foreign truck tire is not the gap between state-owned and private enterprises in the tire market share has reached 80%, while the rest were foreign-funded enterprises possession. The development of national highways as well as the overloading phenomenon, making domestic enterprises to start very early in the heavy-duty tires designed to improve on. Is now part of the local leader to form a complete system of self-developed technology to identify the products that rely on science and technology innovation to improve quality, high-end market-oriented development has been formed its own technology systems, product design, research and development and product quality In such areas as foreign brands line or two about the same, such as Aeolus shares continue to launch the project fetal Individualized products. Another leader in the domestic tire began to open up overseas markets, such as Qingdao Double Star more than 30% of the company's all-steel radial tire products for export.

Related industries will directly benefit from the industry recovery

Polyester filament yarn industry in 2005 to expand domestic production of high-speed, general industrial polyester filament products have a basic balance between supply and demand, and product differentiation, especially in the tire cord fabric used in areas such as product demand higher performance products will continue to be in short supply . High modulus low shrinkage polyester filament yarn industry is the meridian tire cord fabric production of raw materials, as related to the safety, so the lower reaches of these customers have generally differentiated industrial polyester filament materials for a long period of testing and for a period of one to two years of product Certification observation, in line with the conditions and can be polyester filament production of industrial enterprises in long-term cooperation. As the differentiation of products, business equipment, technology, management of higher domestic only as Shanghai Petrochemical, a Haili, and other industry-leading businesses to research and development and production. For many in the industry a smaller scale, technical level is relatively backward in terms of small and medium enterprises to complete the adjustment of product structure still take a long time, do not have a short period of time to invest in differentiated product line. We believe that HMLS polyester filament industrial sectors, in terms of production scale, technology level, or incentives, development prospects, Haili was all worth investors to focus on.

According to the statistics of the world carbon black, with black rubber consumption accounted for 89.5 percent of the total amount of carbon black, used tires accounted for 67.5 percent, demand for carbon black and rubber consumption is closely related to major automobile tire industry and constraints . Available carbon black more than 120 manufacturers with annual production capacity of more than 1,800,000 tons, from the point of view the number of production capacity greater than demand. However, from the quality point of view, to meet the requirements of radial tire production, quality and stability of the use of wet granulation process of large-scale installation of the product supply is still inadequate. At present, China's carbon black industry in a number of high value-added products, such as high-performance series of carbon black varieties, species-specific series, such as carbon black each year there are nearly 100,000 tons of the gap, domestic enterprises can not meet domestic market demand.

Domestic carbon black industry in recent years, industry has developed rapidly and gradually increase the concentration and size of the enterprise are ever-increasing domestic production has been 10,000 tons of carbon black device manufacturers a total of more than 20, the total production capacity of about 1,200,000 tons, about The total gross domestic production capacity of 66%. In the tire industry turned the corner, next to the good operation continued, the proposed domestic investors concerned about the carbon black industry leading shares a black cat.

China's tire manufacturing equipment tires from machinery in 2002 entered the phase of rapid growth, in 2002 to tire in 2006 complex machinery of the industry profit growth rate of more than 30%, domestic sales of 70 billion yuan, in 2007 estimated that more than 8,000,000,000 yuan, and The 8.0 billion corresponds to the size of the market, the country engaged in rubber tires Equipment manufacturers more than 300, of which 06 with annual sales of more than 150,000,000 yuan, there are 14. Die domestic tire companies have about 30, mainly in affordable products, manufacturers can only do most of the steel tire molds, mold can tire of the 10 or so. 2006 National tire mold manufacturers domestic sales of about 1,000,000,000 yuan, of which radial tire mold 500,000,000 yuan, of which 220,000,000 yuan radial tire molds, mold tire of the total market share of 26%, of which radial tire mold with a market share of 44 %. Domestic tire equipment involved in the listed companies are Qingdao and soft control wheel shares.

Rubber price stability will be slightly

The main raw materials, natural rubber tires, synthetic rubber supply and price fluctuations on the company's tire production and management have a significant impact in 2008 rubber prices will remain stable or even declined slightly, it will tire manufacturers to buy and reserve days Glue a good time. In 2007 than the market price of rubber in 2006 was somewhat lower, but the demand for and cost of making the support of its overall price is still a relatively high level of the history, and synthetic rubber prices are rising crude oil prices driven by strong and comprehensive than the price level in 2006 Rose slightly.

Rubber both agricultural and industrial products of the double attribute of the world's six major rubber producers in Thailand, Indonesia, Malaysia rubber of the three countries of the world's rubber output accounts for 72% of the total output of the above-mentioned changes in the production of the three countries will have a direct bearing on the world The supply of rubber. In fact the world's six major rubber producing countries, except China remained stable, a slight decrease in Malaysia, the other countries in the area of rubber plantations in recent years have been significant increases. On the other hand the rubber is a slowdown in consumption growth. IRSG rubber consumption in 2007 forecast a growth rate of 4.9 percent, but in 2008 will fall to 2.2% in 2007 due to the slow growth of supply and demand for rapid growth, making the NR stocks / consumption ratio fell to a record low, 08, and will again in 2009上升. 2007 is a synthetic rubber stocks lower for the time being, as opposed to consumption is expected in 2008 and 2009 World stocks will continue to increase.

Therefore, considering the weather factor, to judge from the supply and demand fundamentals in the next 2-3 years, rubber prices will be relatively stable, or even steadily. Although the processing of synthetic rubber to some extent by the international crude oil price fluctuations, supply and demand still dominant. In the future increasing the supply of rubber, synthetic rubber will not be substantially higher.