“As the prices of major raw materials fall, the buying momentum in the market begins to pick up; in addition, the production costs of tire companies are greatly reduced. Therefore, the overall profitability of the tire industry will be improved.†Cao Kechang “With the introduction of a new round of stimulus policies, the launch of a number of major projects such as railways, highways, and infrastructure will create new logistics and transportation needs, and tire demand will increase at that time.†Han Faqiang China's tire industry, which is deeply trapped by profits and sales volume, has ushered in a turning point. Recently, the reporter learned that as the price of natural rubber fell, orders for large-scale tire companies increased, and the operating rate increased significantly to around 80%-85%. The operating rate in April was generally around 70%. A number of tire executives said that with the introduction of a series of stimulus policies, the tire industry operating rate is expected to continue to increase, the industry will recover in the short term. The vacancy in production capacity over the Chinese tire industry is slowly dissipating. In Shandong, China's most important tire production base, a number of large-scale tire factories have accelerated production. It is reported that car tires and light truck tire companies have taken the lead in recovery, and the operating rate of large enterprises has increased to over 80%. This is very different from what it was several months ago. Prior to the Spring Festival in 2012, the China Rubber Industry Association tire branch conducted an informal survey of 48 tire companies. Half of the company's vacation time was significantly extended to two weeks. Normal year vacations should be less than a week; only three Cooper tires are included. Businesses choose normal leave due to supply shortages. The profitability of tire companies began to improve. Relevant data show that in 2011 China's tire industry's profit margin hit a record low, with a net profit margin of approximately 1% to 2%; of the 48 large-scale tire companies, half of the companies suffered losses. In the first quarter of this year, the gross profit rate of tire companies generally rebounded. The average gross profit rate of tire products in the first quarter increased by 13.4%. The 2012 quarterly report from tire listed companies showed that overall net profit increased by 62% year-on-year; five of the seven listed tire companies’ net profits rose year-on-year. Cao Kechang, Cooper Tire's global vice president and president of Asia Pacific, said that it is expected that the loss of Chinese tire companies in 2012 will narrow, with only about 20% of the companies losing money. The upturn in the profitability of the tire industry stems from two aspects. First, the short-term raw material costs have the greatest impact on the profitability of tire companies. “Natural rubber fell from the highest point of 5,800 yuan/ton in 2011 to 3,300 yuan/ton, giving the tire industry a breathing space. In the spring of 2011, many tire companies snapped up near natural prices because of concerns about the continuous rise in natural rubber prices. In the end, rubber has to absorb high cost pressures on its own,†Cao Kechang told reporters: “As the prices of major raw materials fall, the market buying starts to pick up; in addition, the production costs of tire companies are greatly reduced. Therefore, the overall profitability of the tire industry It will be improved.†It is reported that the cost of raw materials accounts for about 85% of the total tire cost, and the total cost of raw materials for tires (as semi-steel tires) has dropped by about 19% year-on-year, so the total tire cost has dropped by 10% to 16% year-on-year. . A number of tire executives said that the increase in tire demand this year will further lift the tire industry out of difficulties. Fengshen shares secretarial secretary Han Faqiang said: "With the introduction of a new round of stimulus policies, the launch of a number of major projects such as railways, highways, and infrastructure will lead to new demand for logistics and transportation, and tire demand will also increase." May 23 The executive meeting of the State Council clearly pointed out that adjusting economic priorities will put steady growth in a more important position. The meeting called for advancing major projects under the Twelfth Five-Year Plan to be implemented on schedule, launching a number of major projects that have a bearing on the overall situation and strong mobilization, and identified projects in the areas of roads, railways, energy conservation and environmental protection, rural and western infrastructure, etc. To speed up the progress of the early work. Pet Bottle Blow Molding Machine Ningbo Ingenta Mold & Machinery Co.,Limited , https://www.china-ingenta.com