In August, Shandong Province's tire production increased 2.7% year-on-year

According to the Shandong Economic and Information Commission, from January to August, Shandong Province produced a total of 20,229.30 tires, an increase of 2.7% year-on-year, including 72.165 million radial tires, an increase of 9.1% year-on-year. The dispatched six key tire companies achieved a total operating income of 30.85 billion yuan, a year-on-year increase of 13.7%, a profit tax of 1.96 billion yuan, a year-on-year increase of 21.7%, and a profit of 1.36 billion yuan, a year-on-year increase of 26.3%.

The rubber material accounts for about 70% of the cost of raw materials for the production of tires. From January to August, the average purchase price of natural rubber in Shandong Province was 36,500 yuan/ton, an increase of 52.8% year-on-year; the average price of synthetic rubber butadiene rubber was from January to August. 30,000 yuan/ton, a year-on-year increase of 50%.

The decline in domestic automobile production and sales will affect tire sales. In order to absorb the pressure of rising costs, companies first slow down the pace of production, the second is the price increase of finished products, the current price increase of finished products is about 10%, the third is to reduce the bias on the tires and other plastic consumption but lower output value The fourth is to open up foreign markets, increase exports, and reduce pressure on the domestic market. From January to August, the province's tire export delivery value reached 28.04 billion yuan, an increase of 46.2% year-on-year, which was a 3.1 percentage point increase from January to June.

Qingdao Double Star Group produced 4.54 million tires, down 14.2% year-on-year, including 4.28 million radial tires, down 10.8% year-on-year. The sales income was 6.851 billion yuan, a year-on-year decrease of 4.36%, a profit of 44.98 million yuan, a year-on-year increase of 68.21%, and an export value of 233 million US dollars, a year-on-year increase of 25.6%.

As the tire industry is affected by many factors such as the sharp increase in raw material prices, the expansion of tire production capacity, the decline in the growth rate of domestic automobile production, and shrinking foreign demand, the Economic and Information Commission of Shandong Province expects that the tire industry will be more difficult to produce and operate in the fourth quarter.

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