In February, PCR prices continued to fall. This is measured by the PCR Distributor price index (PCR-DPI). China’s PCR-DPI hit 69.6% in February 2016. This was a fall of 0.11% since January and a decline of 2.34% since February 2015. The index is based on 100% at May 2011. It has fallen steadily since April
After rapid fall in 2015, China’s tire industry has had a tough start to 2016. Layoffs, bankruptcies, mergers, restructuring, de-capacity and cost reduction have become the common words to Chinese tire companies, both small and large. What do the next three years hold for this industry? Prediction 1: Profit will fall to zero Perhaps, or
China Tire Dealer reports on the changing face of the tire distribution trade in China. The traditional approach is like a pyramid, consisting of a tire manufacturer, tire wholesaler, tire distributor and tire store. The tire maker at the top is a large company handling many tires. At the bottom, a large number of retailers
As the Internet develops, China Tire Dealer has some advice for tire dealers who want to place online advertisements: • Net-users tend to have higher education background and spending power. • Internet takes your message all over the country; not just your local area. • Lower costs can bring benefit especially to small companies. •
Recently, German magazine- Auto Bild carried out a wet-braking test on 50 selected summer tires. Unit: meter (lower numbers mean better performance) All the tested tires are in type: 205/55 R16 V Position Summer tires Wet-Baking (Meter)* Dry-braking (Meter)** Total (Meter) 1 Pirelli Cinturato P7 Blue (91 V) 27,0 34,8 61,8 2 Hankook Ventus Prime³
Shandong Governor Guo Shuqing (郭树清) said in his latest report that the regional government plans to drive capacity-reduction through bankruptcies, mergers, acquisitions and debt restructuring. The local government has issued a plan to reduce the number of ‘zombie companies’ in order to reduce capacity. Director of Shandong Province, Qian Huan Tao (钱焕涛) said Shandong should
A Zombie company (僵尸企业) is one which is technically bankrupt, but continues to operate through bank loans, government support, or even cancellation of debts. The key aspect of these organisation is the long-term dependence on this support. Companies that faced a crisis and needed a one-off loan, or government support to bring them back to
China’s government plans to transfer up to 6m employees out of zombie companies before 2019. The aim is to reduce over-capacity across a range of industries. On Feb 29, Minister of Human Resources and Social Security Yin Weimin (尹蔚民) said central government plans to award up to RMB 100,000m in ‘prize money’ to help resettle
A report in Tire Review says the biggest concern in the China tire industry is that the imposition of anti-dumping (AD) and countervailing (CVD) duties on Chinese-made truck tires might trigger a wave of similar duties by countries around the world. A meeting hosted by Minmetals, CRIA and others in Beijing on 19 Feb discussed
Tire World carried out a survey of tire makers asking about their current sentiment. US export activities: Still exporting to US 22% Looking for other regions 61% Given up on US Market 17% Export profitability: Still making decent profit 12% Just about breakeven 30% Low Profit 58% Other export markets Africa 38% Southeast
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