An insightful analysis by international consultancy Dezan Shira & Associates, looks at the recycling industry in China and how it differs from the recycling sector in the West. The key difference is that Westerners tend to see recycling as, “a civic, responsible, and green activity. In China, however, recycling is a market-driven economic activity galvanized
This table shows Chinese TBR companies price adjustment in February. The reductions go against optimism in the industry that prices might in fact increase in the coming months. Company Price Adjustment Hengfeng Rubber Plastic -3.00% Yongsheng Rubber -3.00% Fangxing Rubber -2.00% + -2.00% more discount every hundred tires Huasheng Rubber -3.00% Shengtai Rubber
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
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