On January 20, 2015, the United States launched a “double reverse†survey on passenger car and light truck tires in China. On June 3, 2014, the United States Steel Workers Union (USW) applied for a "double reverse" survey. Eventually, the US Department of Commerce's International Trade Bureau ruled that the preliminary deadline for relevant investigations was postponed from December 1, 2014 to January 20, 2015. day. This is the latest action of the United States following the implementation of “special protection†restrictions on China tires for three consecutive years from 2009 to 2011. Under the demonstration effect, countries and regions such as India, Brazil, and Europe, which have already built up high barriers to trade in Chinese tires, may actively follow up and join the “double reactionâ€. According to industry data provided by LANXESS Chemicals, since China became a “world tire factory†in 2012, 40% of its tires' annual output was exported to overseas markets, and the EU and the United States accounted for 50% of all exports. It is worth mentioning that since 2011, with the continuous increase in the international supply of raw materials such as natural rubber, market prices have continued to decline. In September 2014, the price of domestic natural rubber fell to a new low in five years. This is good for the tire industry downstream of the rubber industry chain, but due to overcapacity and other reasons, tire prices have continued to fall. The industry generally believes that the United States "double anti-" investigation will seriously hit the Chinese tire industry. Chaos According to relevant statistics from the National Bureau of Statistics, Chinese tire companies are mainly concentrated in eastern regions such as Shandong, Jiangsu and Shanghai, and there are more than 600 enterprises above designated size. Among them, "China Tire Base" Shandong has more than 300 companies above designated size. However, the comprehensive competitiveness of these companies is not strong. The mid- to high-end car and truck tire markets are basically divided by foreign and joint ventures such as Michelin and Hankook. The main advantages of domestic tire companies, such as Hangzhou Zhongce and Triangle tires, are reflected in the market for heavy trucks, construction machinery companies, and rubber products. Other small and medium-sized local tire companies have long suffered from the industry's "scattered, chaotic, poor, and small" burdens and struggled. Xu Bingjin, president of the China-Europe Economic and Technical Cooperation Association and honorary chairman of the China Automobile Dealers Association, said that the relevant ministries lag behind in the management of the industry and the industry lacks relevant legislation. Under the influence of internal and external factors, not only has the domestic autonomous tire companies grown slowly, but also the core technology has been “hollowing out†for a long time. The problem tires and fake tires that can be seen everywhere in the market are one of the most important causes of China's annual road traffic death rate ranking high in the world. "As the United States 'double-reverse' investigation has led to the re-export of domestic exports, chaos is now even worse," said Li Junjie, a domestic tire distributor in Shanghai. He said that Dongying Tire's annual production accounted for more than 40% of the country's annual tire production, but most of them were home-plant-type factories. In order to deal with the price war, many small factories can only cut corners. In addition, although tire products have "Three Guarantees Responsibility" regulations, that is, there are quality problems during the warranty period, consumers can request manufacturers to repair, replace, return, but because of interest driven, "non-three guarantees" and fake and shoddy products still occupy The large market space further exacerbated the deterioration of the tire market. Taking Chaoyang Tire as an example, its manufacturer is Hangzhou Zhongce Rubber Group Co., Ltd., and the place of production is registered as No. 1 No. 1 Avenue, Xiasha Economic and Technological Development Zone, Hangzhou, Zhejiang, China. However, in Chaoyang City, Liaoning Province, tires produced by some tire factories sell fake counterfeit "Chaoyang Tires." Even the tire tread patterns are extremely similar. Life and death In this case, domestic tire manufacturers can only transfer the pressure to the distributors of the industrial chain terminals. According to a Bridgestone tires company in eastern China who was unwilling to be named, large-scale autonomous tire companies are able to resist risks by transforming the enterprise market management model, which means that the original enterprise market supervision and management personnel are all transformed into a new team that “supervises salesâ€. , conduct full staff management and sales. However, although the raw materials in the upstream of tires have been continuously reduced in price, manufacturers have not passed this advantage to distributors. Moreover, in the past, a tire company only allowed the development of an exclusive agent in a province. Now, most tire companies are allowed to join 1-2 agents and accept the same commercial terms. At the same time, large customers that had previously been directly targeted by distributors, such as automakers, are now being returned to manufacturers for direct management. Li Junjie believes that the strength of the tire manufacturers is “no bottom line†and they directly take away the large customers of the distributors. At the same time, “one domain and multiple generations†of business policies will directly provoke the dealers' struggles in the development of customers. Goods and price war. “Poor thing is that when many distributors first joined a certain brand, the funds were mostly borrowed from banks. Now that manufacturers are normally picking up goods, they generally accept 2-3 times more press warehouses than in previous years, and all the tire factory’s money It must be settled in one transaction.†An industry source stated that it is difficult for dealers to collect debts for many years in the industry. When the market is sluggish, dealers can only use the inventory to make loans, and the banks will monitor the inventory in real time. The bank will immediately close the inventory once the stock of the dealership becomes insolvent. "The worst thing is that many tire companies have introduced e-commerce models in the market, which has a great impact on traditional distributors." Li Junjie said that the rise of "O2O" has led to the start of many online platforms such as McPherson.com and Tyremaster. The ex-factory price or the loss price for shipping is to gather platform popularity. This makes traditional dealers only become service providers when interacting with consumers. Wang Baixia, Director of Product Intelligence Research Department of China Automotive Technology and Research Center, said: "The zero-sum game between dealers and tire manufacturers is indeed driving the domestic tire dealers all the way. In the future, those who can survive life and death will continue to grow; Can not keep up, naturally eliminated." As the tire companies' "steady profits do not pay", but also tempted the influx of hot money. According to public information, at the end of 2014, Shandong had originally planned to launch 10 large-scale tire factories and had finally been approved by 3 companies. However, the tire industry is a heavy asset industry. Many companies have already “abducted†local governments and banks in investment and management. For example, in Dawang Town, a major industrial town in Dongying, the local entrepreneurs and the government spontaneously formed a “guarantee alliance.†For businesses that are already close to collapse, the group of owners not only timely provided financing, channels, etc., but also had a deep involvement in banks. Almost being staged "National Progression". Wang Baixia believes that the overcapacity in the domestic tire industry is a structural excess and mainly concentrated on the low end. The essence of the joint efforts of enterprises and local governments reflects that in the face of fierce competition from foreign investors, the industry's long-standing "ostrich mentality" does not contribute to the rise of independent brands. Dry Graphite,Graphite Powder,Dry Graphite Powder,Graphite Powder Bunnings CARBONS TECH&CREATION(HENAN) INDUSTRY CO.,LTD , https://www.kyisostaticgraphites.com
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