As a result of slowdown in production and marketing costs increased degree of economic decline in rubber industry

State Information Center of the Economic Forecast Department monthly report showed a slowdown in production and marketing costs as well as the role of the double pressure, high drop-effectiveness of the rubber products industry, the degree of economic decline in the industry.

After a few years ago, in particular, in 2005 to expand production of high-speed, tire production in 2006 clearly put

Ease. Before May, the national scale enterprises and more than a total tire production 166,000,000, an increase of 13.77 percent, year-on-year growth rate fell by 13 percentage points lower than the year 2005 an average of 27% of output growth. Rubber industry-wide industrial output value of 100,637,000,000 yuan, up 26.17 percent, the basic rate the same as last year.

As the trend in prices is no longer in the first quarter of the rubber products industry sales growth of high drop in April and May, with the industry demand growth began to decline, industry revenue growth rate will decline further. In May before the industry-wide sales of 97,421,000,000 yuan, up 26.81 percent. At the same time, cost of sales amounted to 84,491,000,000 yuan, up 29.09 percent, faster than income over the same period increased by 2.2 percentage points, greatly weakened the industry's profit growth potential.

In the first quarter of the rubber products industry profit growth in a big turning point. April and May, sales, costs, expenses and other factors, the decline further. 1-5 month cumulative total profit growth of 21.5 percent year-on-year rate in April than the previous decline in nearly 3 percentage points, than in the first quarter decreased by 6 percentage points, and the level of the year than in 2005 dropped by 15.47 percent.

Rubber tires in particular, rely on a great export. From 2006 the export situation in May, exports 26,127,000,000 yuan, up 25.49 percent, while the growth rate dropped by 15.3 percent. Export growth of the industry growth declined.