Will the gradual recovery of the tire industry since the second half of last year be affected by news that the United States has launched a “double anti” investigation at the beginning of 2024, which has disrupted the tire market? Securities Times reporters learned from tire companies that due to early overseas factory construction, China’s top tire companies are limited by this impact, and the tire production and sales boom is expected to continue this year.
On January 2nd, the US Department of Commerce announced the first anti-dumping and anti subsidy sunset review investigation into truck and bus tires imported from China. At the same time, the International Trade Commission of the United States has launched the first “double anti” sunset review industrial damage investigation into the above-mentioned products.
It is reported that the above measures aim to review the effectiveness of existing anti-dumping and countervailing measures, and decide whether to continue implementing these measures. At the same time, it is evaluated whether the cancellation of current anti-dumping and countervailing measures will cause substantial damage to domestic industries in the foreseeable future, or whether it will happen again.
Due to the fact that the United States is the largest export market for tires in China, exports of tires to the United States account for a large proportion of China’s tire exports. In recent years, the United States has carried out frequent and severe anti-dumping measures against Chinese tires. Looking back, the US Department of Commerce launched an anti-dumping and anti subsidy investigation on truck and bus tires imported from China on February 18, 2016. Subsequently, on January 23, 2017, the US Department of Commerce made a final affirmative determination on anti-dumping and countervailing measures against these imported products. Finally, starting from February 15, 2019, the US Department of Commerce officially imposed anti-dumping and countervailing duties on these Chinese products involved in the case.
In recent years, while Chinese tire companies have rapidly developed and grown, they are also facing trade protection policies from many countries or regions. There is uncertainty in the future review results of existing trade protection policies by relevant countries or regions, whether there have been changes, and whether new investigations have been initiated.
Industry insiders say that the global layout of tire companies can help avoid the risk of “double anti” tax rates caused by production concentration. For example, last year, the United States launched an anti-dumping investigation against Thailand, and relevant companies can adjust their shipment flow and transfer orders from the US market to other production bases that have already been put into production to cope with trade barriers.
Guojin Securities believes that from the overseas layout process of domestic tire companies, their Southeast Asian bases have become relatively mature and have entered the stage of expanding production capacity. Some companies have extended their layout from Asia to Europe and Africa. After achieving a global multi base layout, while ensuring supply chain stability, they will further expand sales and seize market share.
The person in charge said that since the second half of last year, the operating rates of all steel and semi steel tires in domestic factories have been good, and the increment of non road tires is also relatively good. From the current perspective, supply and demand are still tight, especially in the area of giant tires, with gross profit maintaining a high level. It is expected that a good trend will continue this year.
Post time: Jan-30-2024