Despite a 36.3 per cent increase in operating income to RMB 2.2 billion (£249.4 million) in the first quarter of 2017, Triangle Tire reports that its year-on-year net profit declined 2.6 per cent in the first three months of the year to RMB 156.9 million (£17.8 million).
Titan International has commented on the final results of the US Department of Commerce’s (DOC) review of imported OTR tyres from China in 2014 and 2015, which show the Chinese government increased the level of subsidies it gave tyre makers, enabling their products to continue selling in the US market at what the tyre maker calls a less than fair value.
“These results confirm our belief that the levels of government subsidisation had significantly increased and that the amount of dumping has continued,” said Paul Reitz, president and chief executive officer of Titan International. “The continued monitoring by the DOC of these orders and the imposition of accurate amounts of countervailing and antidumping duties is an important step in restoring conditions of fair trade. We will continue to work with the DOC to insure that any and all subsidisation and dumping by Chinese producers is met by appropriate duty levels. We have been fighting and will continue to fight against the unfair trade practices of any US trading partners.”
The results’ release updates the level of duties imposed on OTR tyre imports to counteract the most recent levels of subsidisation and dumping identified by the Department of Commerce. The identified levels of subsidisation have increased dramatically since they were last analysed. Specifically, the department found subsidy levels, which previously ranged from 2.52 per cent to 5.65 per cent, to be 34.46 per cent to 46.01 per cent in the recent review. The Department of Commerce has also continued to find that Chinese producers are selling at amounts significantly below their costs.
With the Hungary plant going on stream, Apollo Tyres plans to increase its market share to 3.5 per cent in the next two-three years from the current 2.5 per cent in Europe. And, it plans to start supplying to major brands, including Volkswagen and Mercedes-Benz. It also said the US would be its next stop for building brands. Apollo Tyres Vice-Chairman and Managing Director Neeraj Kanwar said its Vision 2020 for Europe was to be a premium brand both in terms of size and price.
This observation — by Yuka Kimoto, director of marketing for Lion Elastomers — is the accepted wisdom in the synthetic rubber market, and with good reason.
Prices for a wide swath of synthetic rubbers have gone sharply up in the past few months, sparked by equally sharp increases in butadiene, methanol and other petrochemical feedstocks.
Considering oil prices alone, there is no reason to believe that feedstock prices — and, with them, SR prices — are coming down any time soon. As of March 30, futures for both West Texas Intermediate Crude and Brent Crude were at a three-week high, at around $50 or so per barrel, indicating bullish prices for anything based on petroleum.
The reason is another well-known factor, in SR and in every other commodity: supply and demand. In the case of butadiene, there was another issue: location, location, location.
Scheduled and unscheduled maintenance shutdowns for butadiene facilities in Asia and Europe placed limits on the availability of butadiene, according to sources who spoke to Rubber & Plastics News and European Rubber Journal.
An unexpected surge of demand for butadiene in China, starting in the fall of 2016 and continuing into 2017, caused Asian butadiene prices to soar as high as $3,000 per metric ton. North American and European prices, though never as high as in Asia, rose accordingly.
The global automotive rubber moulded components sales grew from 65 million during the 2008-09 recession to over 89 million in 2015, with a spike of over 19% during the past seven years. In light of the growing demand for fuel-efficient and less polluting vehicles, the market for lightweight automotive components of higher durability is on the rise. Further, with chemical companies such as Chem-Trend coming up with better release agents and moulding process aids, the market for automotive rubber moulded components is expected to touch USD 45.16 billion by 2021. Technological advancements have been the major trigger for this growth. Innovations such as Ford’s eco-friendly rubber parts using soy oil and research labs trying to come up with better and durable rubber materials like EPDM are expected to drive the market at a CAGR of 6.26% by till 2022.
March, natural rubber continued unilateral decline in the trend continued to continue unilateral decline, and continue to hit a new low, but then encounter, stabilized stabilized, and returned to a technical rebound, which reflects the supply and demand of natural rubber market The relationship is reversed from the background and the essence of the reversal.
Prospects and Strategy Suggestions
Looking forward to April trend, by the international and domestic aspects of the neutral factors of the neutral intertwined effect, in the surrounding Tokyo City, Singapore rubber market both down the trend of deep down, Hujiao market outlook will continue the formation of the original deep down Of the trend, while subject to the global macroeconomic and financial situation neutral factors, although the short-term may fall sharply, but the medium-term may return to the low regional concussion trend, the operation should be short-term low-absorbing high-throwing.
Atlas Tire Wholesale recently hosted the summer edition of their renowned Atlas Tire University program. Besides hearing about the latest tire technologies and products, guests who attended the event also learned about the most up-to-date online marketing and social media strategies.
ATU invited social media expert, Casey Walter from Optimize Social Media in Oakdale, Minnesota to speak about strategies tire retailers can put into practice today in order to better position their companies online to compete in today’s challenging market.
Besides a host of Facebook, YouTube, Twitter, Yelp, Google+ and Instagram strategies, Walter also spoke about online reputation management, and how to deal with disgruntled customers who complain about your tire business on social media.
Atlas Tire also invited Michal Majernik, Manager, Communications for the Tire and Rubber Association of Canada (TRAC) to talk about the latest and most pertinent statistics tire statistics. Majernik also discussed the demise of the Ontario Tire Stewardship program, and explained how Ontario’s tire recycling infrastructure is likely to change in the near future.
In addition to a gourmet lunch, guests of Atlas Tire enjoyed giveaways and prizes throughout the day, as well as an opportunity to network with peers along with tire industry representatives and experts.
For Jim Cramer, Thursday’s big bank earnings reports could not be more important to this ailing market. For over 36 years, the stock market has edged up, resulting in overall higher prices and an eight-year streak of bullish sentiment. “But every big move, every move that had really any impact, always had the banks as one of the major leadership groups,” the “Mad Money” host said.
Trends in the global tire industry play to the strengths of The Goodyear Tire & Rubber Company and its strategy to drive profitable growth.
“The accelerating shift to high-value-added tires for both consumer vehicles and commercial trucks is the main product trend shaping the future of the tire industry,” Chairman, Chief Executive Officer and President Richard J. Kramer said at the company’s recent annual shareholder meeting.
Global trends within the tire industry play to Goodyear Tire & Rubber Co.’s strengths, the tiremaker said during a recent shareholder’s meeting.
“The accelerating shift to high-value-added tires for both consumer vehicles and commercial trucks is the main product trend shaping the future of the tire industry,” said Rich Kramer, CEO and president of Goodyear.