Gu Hongzheng, chairman of the China Rubber Industry Association, warned a few days ago: If this year's all-steel tire production remains at 13 to 13 to 500,000, the domestic market may still be prosperous, but if the output exceeds 15 million, market prices will not be stable.
Due to the country's implementation of the car load-limiting policy and the rapid expansion of production capacity, sales of all-steel tires have generally been on a red-light since the beginning of this year. However, inertial production has not yet stopped. It is understood that in 2003, the country's total output of steel tires reached 11.19 million, an increase of more than 60% from the previous year; in January-February this year, production reached 1.91 million, an increase of 63.9%. The substantial increase in output and the slowdown in sales growth have greatly aggravated the pressure on the manufacturers' inventory. At present, most companies have begun to implement various promotion methods and hope that dealers can ease the pressure on production and inventory.
According to dealers, the sales of all-steel tires this year have generally increased more difficult than last year. This situation is even more evident in the north. In this case, the dealer is most afraid of the price war. The price cut will not only eat up the limited profits of tire manufacturers and distributors, but also cause serious competition and disrupt the market order. It is understood that last year the tire industry encountered difficulties in the price increase of various raw materials based on natural rubber, but the indicators of the tire industry still increased. According to statistics from the China Rubber Industry Association, in 2003, the tire production of member companies increased by 10.7% over the previous year, of which radial tires increased by 37.1%, all-steel tires increased by 64.7%, and profits increased by 19.48%. Tire companies and distributors have realized that these achievements have not come by easily. At present, there is little room for price cuts for all-steel tire products. Once the price war starts, the industry will be devastated.
At present, all steel tires on the domestic market are basically produced by existing enterprises and have already formed a certain market share. However, with the new enterprise full steel tire project put into production, its capacity will begin to show, this year's output will account for 10% -15% of domestic production. Since all steel tires of these companies have just been listed, they still do not have the brand reputation and market recognition. The way they will enter the market and what impact they will have on the market remains to be observed.
However, all-steel tire dealers are also optimistic. They believe that after entering the summer, sales of all-steel tires will improve. Because all steel tires have good heat dissipation, demand will increase.
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