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Big Brand Tires

Posted on May 11, 2010.
Big Brand TiresTire China in March or re-export of 6% price increase to face three major difficulties

World Trade Organization (hereinafter referred to as World Trade Organization) on the entire 19th place a working group to investigate and determine the U.S. safeguard measures on trade rules violation tires from China. Although the World Trade Organization has been involved in the matter of protection of special tires, but tire exports to China are also facing new challenges.

raw material costs with price increases, the end of last year, since the tire industry has been broadly based, the price of 5% from the factory. Some companies said that in March there is a plan to increase prices by 6%. The dilemma comes with the case "special security" Since the spread of the United States "where special protection, export firms in the tire of China's anti-dumping and countervailing investigations has reached more than 10 countries.

In early January this year, Indian anti-dumping duties on exports has also the right tire companies in China to arbitration, the collection of 24.97 to 88.27%, ranging from anti-dumping.

Under WTO rules, countries can be invoked directly before the U.S. sanctions programs on Chinese exports of tires to impose sanctions. Recently, India, Brazil, Argentina and other countries will be based on the United States come from the investigation of China's automobile tire anti-dumping investigations if these anti-dumping once established, China's exports of automobile tires are also facing new challenges, China's tire exports to the environment will deteriorate further. The other concern is overcapacity Chinese tire exports to the high concentration there is the phenomenon of the export market.

The data show that 40% of tire production in China are exported, while U.S. exports to various markets reached 30% of total exports, highly concentrated market structure of potential risks. Currently, the rate of China's tire industry adequate operating in January 2009 to November of China rubber (information, quotes) the production of tires 597,340,000, an increase of 15.6% over the same period last year. Meet the resistance if the United States and other export markets, coupled with a surge in trade barriers, export products in a short time and can not be fully released into the market, the tire industry China will face a dilemma capacity of 10-15 per cent more. The cost to transform the fate of three rubber "Companies today are faced with the problem of production costs increase." Shandong Linglong tires (hereinafter referred to as tricky tires), Minister of the Kingdom of plum overseas marketing, told reporters, she said that since last year, volatility of commodity prices, a great impact on companies. "Most of our raw materials are imported, such as natural rubber, 80 percent of imports from Southeast Asia, the insoluble sulfur and other materials from small 100% of imports." Industry sources close to three months, the soaring price of rubber over the same period last year almost doubled. Last year in November, natural rubber, 18,000 yuan / ton to 12 months to drill 20,000 yuan / ton in the current was increased to 24,000 yuan / ton.

synthetic rubber last year, more than 17,000 yuan per ton in November rose to more than 21,000 yuan per ton today. Cons-response to higher prices charged by manufacturers increased costs for rubber, tire companies generally price to treat. Triangle Tire staff said the company was the first in December last year, up less than 5% of the range. In addition, the sun Hangzhou Zhongce Rubber, good luck and so on all four tires from major manufacturers, the ex-factory prices since January 19 is also a broad base to 5%. Tire Kingdom delicate plum, said higher prices last year, up 5%; January again this year, up 5%; now appears that the dynamics of rising costs are not reduced, Mars, the company expects to earn an additional 6%. For dr.

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