In the past two years, the exceptionally popular all-steel radial tires have now become red lights. According to the company’s report, sales should start after entering the market in February. However, in March, the sales situation is still unsatisfactory, the company’s inventory has increased, and some funds have been unsmooth. Once the cash has been picked up, the goods have been queued up, and how much has been sold. No longer exist. At present, in addition to individual companies still optimistic about the sales, some companies have begun to order production, and some began to promote, users can freely choose the tire brand. According to industry insiders, the supply and demand of the domestic steel tyre market have been basically balanced and the era of high profit is coming to an end.
Limited load limits the all-steel tire Since last year, the nationwide implementation of the policy of restricting vehicle overload has had a significant impact on sales of all-steel tires. Although the implementation of this provision is of great significance for safe driving and highway protection, due to the fact that the current situation of high road tolls in China has not changed, the limited load also means that the profits of road transport are reduced or even no money is available. Therefore, after the implementation of this measure, long-distance road transport was greatly reduced, and rail freight began to become tense. In the case of short-distance transportation, if it is not overloaded or on the highway, the biased tires can be fully adapted. In this case, the superiority of all-steel tires such as large bearing capacity, high mileage, and high speed adaptability is not obvious, and the advantages are not as prominent as those of bias tires. In addition, in terms of prices, one all-steel tire is approximately more than 1,000 yuan more expensive than a skewed tire of the same specification, and spending at least one full-steel tire can buy at least two biased tires, and in markets where the level of consumption is large, This also provides consumers with multiple options. Reflected in the market, the current performance of biased tire sales is optimistic, and all-steel tire inventories increase, and prices are difficult to increase.
Although the limited load has temporarily restricted the sales of all-steel tyres, after the implementation of this measure, under the normal carrying capacity, the brand advantage of the tyres has been highlighted. At present, good tyre brands on the market have already demonstrated sales advantages. At the same time, the forthcoming fuel tax policy of the country will bring good news for all-steel tire sales. The radial tire is 6% to 8% less than the biased tire. This alone can greatly reduce the transportation cost and fully reflect the superiority of the radial tire.
The rapid expansion of investment in concentrated production capacity Due to the development of the transportation industry, in recent years, the supply of all-steel tires has become a highly profitable product in the tire industry. The gap between supply and demand and the high profits of products have attracted investment from all parties. Since 2002, there has been an upsurge of investment in all-steel tires nationwide. There are only a dozen new projects in Shandong alone. At the same time, the existing all-steel tire enterprises have also expanded production in order to maintain market advantage and share. According to rough statistics, by 2005, the annual capacity of newly added steel tires will exceed 20 million. Overly concentrated investment has rapidly expanded the capacity of all-steel tires. According to statistics from the China Rubber Industry Association, in 2001, the output of all-steel tires increased by 34.68%; in 2002, the output of all-steel tires reached 6.227 million, an increase of 65.38% over the previous year; in 2003, all steel tires remained Maintain an increase of more than 60% and the output reached more than 11 million.
Supply and demand tend to balance the narrowing of the profit space With the basic balance between supply and demand, sales of all-steel tires have also cooled from unprecedented levels. Due to the high prices of raw materials, changes in market supply and demand, lower export tax rebates, the profits of all-steel tire products have shrunk dramatically. It is understood that in 2001 all steel tire gross profit reached 22% to 30% in the tire products are 'profiteering' products, and this year is expected to be only about 10%.
It is understood that most companies believe that sales of all-steel tires will not be too problematic this year, but sales may not increase substantially. Companies generally believe that the competition for all-steel tires has already begun. In the next 2 to 3 years, all steel tires will enter the competition period.