China’s tyre export growth slowed in August

On 18 September, China Customs announced national export data for August. During the month, China exported 48.23 million sets of new pneumatic rubber tyres, down 8.9 per cent year-on-year. The weight of these tyres was 650,000 tons, an increase of 2.7 per cent. The export value reached 11.4 billion yuan (about 1.4 billion pounds, 1.6 billion euros), an increase of 15.3 per cent.

China exported 383.51 million sets of new pneumatic rubber tyres from January to August, down 0.7 per cent from last year. The export value was 84 billion yuan (about 10.5 billion pounds, 12 billion euros), an increase of 21.6 per cent.

It is worth noting that although the export value of China’s tyre industry in August is still positive, the growth rate has slowed down. From April to July, the tyres’ export value in a single month increased by 19.4 per cent, 36.7 per cent, 22.6 per cent and 50.5 per cent year-on-year. By comparison, August’s figure of 15.3 per cent was not exceptionally high. In addition, the number of tyres exported from China also showed a downward trend, with 8.9 per cent being the most significant drop in the past few months.

In 2022, China’s tyre industry has faced many difficulties, and the domestic market has experienced severe shrinkage. The significant year-on-year increase in export value has boosted many Chinese companies’ operating performance. However, the extraordinary situation of China’s tyre exports does not seem to last long. Not long ago, Shen Jinrong, chairman of ZC Rubber, predicted that China’s tyre exports would rapidly decline in the year’s second half. The August customs data seems to have verified Shen Jinrong’s point of view to a certain extent. However, falling shipping costs may move export growth back in a more positive direction.