Rubber machinery caused by external factors caused the industry downturn

After experiencing a surge in demand for blowouts in the first half of 2014, the rubber machinery industry in China has experienced a lot of hardships.

Industry insiders said that in addition to the changes in the operating environment of the downstream tire industry, the over-consistency of the industry’s own product structural overhangs is also a major cause of this situation, and the rubber machinery industry must prepare for a longer period of time.

External factors: Tire investment support weakened orders The suspension or cancellation of China's tire radialization rate was over 89%. Compared to the average radial tires rate in the world, there was not much room for improvement. Li Dongping, honorary president of the China National Chemical Equipment Association’s Rubber Machinery Professional Committee, said that in the past, tire investment was driven by both the growing demand for tires and the meridianization of tires. Now, it can only be supported by the increase in tire demand. The tire industry is difficult to reproduce with rapid development. The past era of equipment orders to promote the rapid development of the rubber machinery industry is no longer a return, relying on conventional rubber machinery orders is difficult to survive, let alone development.

After years of rapid development in China's tire industry, the structural excess of products is very serious and the industry has entered a period of low profit. In June, the United States announced the launch of a “double counter” investigation on Chinese tires, which added to the operating environment of the tire industry. Chinese tire companies had to stop or reduce their investment in tires, so that orders for rubber machinery declined. After July, new orders for Chinese rubber machinery were very limited, which was less than the conventional 20%. What is even worse is that orders executed in the first half of the year have been suspended or canceled. Orders organized by the rubber machine companies have been postponed to pick up the goods, leaving the rubber machinery company's funds trapped in the backlog of products.

Many companies in the industry have been waiting for their products, and some of the companies’ funds have failed. Now that the rubber price is at a historically low level, tire prices are still on the road to bottoming out, and tire inventory has increased by more than 30% year-on-year, a record high. In this case, tire investment enthusiasm decreased, rubber machinery orders reduced to natural. The tire factory itself is difficult to operate, and the return of the rubber machine industry will be even more difficult.

Internal factors: Clearly entering the buyer's market "Infighting" often hit the price war After years of rapid development, especially after the recent rapid expansion of production capacity, the surplus of China's rubber machinery structure is very obvious, that is, a serious surplus of popular rubber machinery products, but high-end rubber machinery demand There is still a gap. In recent years, due to the good situation of orders for rubber machinery, manufacturers of other industries, such as mold companies, have entered the field of rubber machinery, and their rubber machinery production capacity has rapidly increased and entered the obvious buyer's market. Take the tire vulcanizing machine as an example. Under normal circumstances, China's annual demand for tire vulcanizing machines is about 2,500 units, but currently China's annual production capacity has reached more than 4,000 units. The serious over-production of products resulted in a large number of participants in each tender and the competition became fierce.

In stark contrast to this, China's rubber machinery has fewer high-end products, the procurement of multinational tire giants is very limited, and the proportion of exports is less than 15%. China's rubber machinery is highly dependent on the Chinese market. Rubber machinery companies can only fight in a limited number of Chinese markets. Price warfare is a common market competition method. Once China’s tire investment is reduced, Chinese rubber machinery will inevitably have insufficient orders, and prices continue to bottom out as high-probability events.

Future directions: Focusing on the “quaternization” construction of rubber machinery to achieve a comprehensive product upgrade Li Dongping said that in the future, the rubber machinery industry will only make efforts in the areas of greenization, standardization, information, and internationalization, and it will be possible to usher in a full product upgrade. A pleasant scene in the village of Willow Village, Willowbank. If you can achieve product upgrades, you will expand market capacity and living space.

For example, 3 years ago, the proportion of hydraulic vulcanizing machines in China was less than 20%, but in the past few years, with the tire factory upgrading product grades, the industrialization of hydraulic vulcanizing machines has been significantly accelerated, and the proportion of hydraulic vulcanizing machines has reached 40%. In the future, it will develop to an international average of 60%. The mechanical vulcanizer will develop from mechanical to hydraulic and sales will increase by more than 50%.

Another example is that the triangular laminating machine originally used a simple semi-automatic laminating machine, which mainly relied on manual operation. The automatic production line is now popular, and the automatic production line has doubled the price compared with the traditional laminating machine. There are also improvements in the stability of rubber equipment such as cutting machines, and the import volume has decreased.

As China's rubber machinery develops to high-grade, its sales increase naturally, expanding the space for the development of rubber machinery.