The tire industry is experiencing a comprehensive high prosperity, with multiple benefits showcasing new driving forces for development

　　The prosperity of the tire industry continues to rise, and Chinese tire companies are seizing the global C-position. On June 5th, Brand Finance released the list of the top 25 global tire companies. Against the backdrop of challenges faced by global tire giants, China has the largest number of tire companies on the list, including well-known enterprises such as Senqilin, Triangle Tire, and Linglong Tire. Meanwhile, data from the General Administration of Customs shows that from January to April 2023, the cumulative export volume of rubber tires in China increased by 11.8% year-on-year, and the export amount increased by 20.4% year-on-year; The data from the National Bureau of Statistics also confirms this trend. In the first four months of this year, China's total tire production increased by 11.4% year-on-year, and its export volume increased by 10.8% year-on-year. The tire industry is entering a comprehensive high prosperity stage, with strong demand in both international and domestic markets.

　　Technological innovation leads industry development, and green and environmentally friendly tires have become the new favorite

　　At the recent Cologne International Tire Exhibition in Germany, Guizhou Tire showcased its latest European second-generation TBR upgraded products and technological achievements. Linglong Tire also launched the industry's first green and environmentally friendly tire, which uses up to 79% sustainable materials. Technological innovation is leading the high-quality development of the tire industry, and green and environmentally friendly tires have become a new direction for industry development. At the same time, China's tire companies are accelerating their international layout, with overseas business revenues of companies such as Senqilin and General Motors accounting for over 70%. By building factories overseas, they aim to enhance their global market competitiveness and promote high-quality industry development.

　　The increase in raw material prices has pushed up tire prices, and the industry's profitability is expected to improve

　　Since February, the price of natural rubber has continued to soar, currently exceeding 14000 yuan/ton, setting a new high in nearly two years; The price of carbon black is also on an upward trend, and the price of butadiene has risen by more than 30%. Affected by the increase in raw material prices, the tire industry has experienced a wave of price hikes since the beginning of this year, including companies such as Linglong Tire, Sailun Tire, Guizhou Tire, and Triangle Tire announcing price increases. At the same time, due to the strong demand for tires, multiple companies have strong production and sales, resulting in high capacity utilization rates. Under the dual benefits of increased sales and price hikes, the profitability of the tire industry is expected to improve. The research report of Tianfeng Securities also pointed out that the tire industry is entering a stage of short-term, medium-term, and long-term logic upward, and is expected to usher in a cycle of valuation and profit recovery and upward adjustment in the future.

　　With the rapid growth of the global tire market, the Chinese tire industry is entering a period of high prosperity and development. Technological innovation and green environmental protection have become new driving forces for industry development, while factors such as international layout and rising raw material prices have also promoted the improvement of industry profitability. Driven by multiple favorable factors, the Chinese tire industry is expected to further enhance its competitiveness in the global market and achieve high-quality development.

　　This article originates from the financial industry

　　Author: Juling