Chinese tyre exports are down due to the continuous decline in global natural rubber prices in recent years. Interestingly, costs of tyre production have also decreased, leading to a decline in the average unit price cites a Research and Markets report.
China exported tyres to over 200 countries and regions and US emerged as the largest export market. In 2015, China exported 1.065 million tons of tyres to the US with decreasing by 20.78% over the previous year, while export in value terms declined by 23% annually at US$ 2.783 billion.
The European Union is the second largest tyre export market and other key markets for tyre shipments are United Arab Emirates, Mexico, Russia, Saudi Arabia and Australia.
In 2016, the export of Chinese tyres still seems unpredictable due to the slow growth in the global economy and shrinking domestic demand. European and Japanese economies are on the brink of recession and emerging economies have slowed down their growth, so the external market demand is limited. Besides, competitive devaluation of foreign currencies has resulted in the passive appreciation of RMB and thus the decreased competitiveness of Chinese exports.
On the whole however, China has great cost and industrial chain advantage. The Chinese tyre industry is expected to maintain its status in the global market in the near future and reports a continuous increase in exports.