Analysis on the development status of steel cord

As a tire steel cord reinforced materials, along with the development of the birth of meridian tire and. The radial tire has the advantages of small rolling resistance, wear resistance and the like, and the steel cord plays an irreplaceable role in the steel cord. But in recent years, the tire industry in the economic downturn, double reverse and other trade barriers under the phenomenon of growth slowdown, resulting in steel cord enterprises pessimistic attitude on the market outlook, the following is currently facing the problem of steel cord:

Steel cord enterprises started to reduce the phenomenon of excess capacity highlights

2013-2015 steel cord construction trend

In 2000 China's domestic production of steel cord only 4.55 million tons, while demand for steel cord radial tire has reached 6.41 million tons, showing a distinct shortage of state, followed by the country began mushrooming production equipment of steel cord, Xingda, Bekaert, Hyosung, Korea, and other started to put into operation successively. But from the beginning of 2008, the domestic production of steel cord manufacturers gradually increased, gradually transformed into a supply exceeding demand by the situation. In 2008, the output of domestic steel cord reached up to a ton of steel cord, and the actual demand of radial tire was 850 thousand tons.

As of this year, domestic steel cord enterprises have more than 20, Jiangsu Xingda, Bekaert, Shandong Sheng Tong as the three giants of the steel cord enterprises, to occupy the market share of about 50%, the construction can be maintained in the 6-7 percent. At present, the domestic steel cord steel cord enterprises to invest in the construction of the total production capacity has reached 2 million 800 thousand tons, while the actual production is less than 2 million tons, the phenomenon of excess capacity highlights.

Corporate profits shrink for six consecutive years, the market stumble endlessly"

Six years, the average price of steel cord from the previous 17000 yuan / ton down to 8000 yuan / ton, the price cut to 53%, the impact on the profits of the steel cord enterprises, a small number of manufacturers began to appear negative profit. According to statistics, 2015 Jiangsu Xingda steel cord Co., Ltd. first half of the total revenue fell 13.4% to RMB 2.44 billion yuan, and some foreign companies, such as Hyosung steel cord Co., Ltd., due to domestic orders decreased and payment is more difficult, enterprises in the near future to increase exports.

Tire export blocked steel cord demand growth slowed

June 12 this year, the U.S. Department of Commerce final ruling Chinese made tires for the existence of dumping and subsidies, Chinese manufacturers will be levied 87.99% and 14.35% of anti-dumping tax and 20.73% - 100.77% of countervailing duties. American as a market for Chinese tire exports to the largest, dual influence, tire exports to the United States dropped sharply, from the third quarter of this year, the Chinese tire exports accounted for than the situation, the proportion fell sharply, compared with the same period last year fell 7%. At present, China's tire exports are facing severe and complex environment, the re arrangement of the industry and demand to re match has become an important task in recent years.

In 2014, the total output of domestic steel cord 1.927 million tons, and according to the WWW estimates total domestic demand in 164.5 million tons, in 2015, the total output of steel cord about in 180 - 190 million tons, total demand at 16.84 million tons, which can see steel cord demand growth is slowing down.

In summary, excess capacity, demand slowdown, profit reduce steel cord market today face the three big problems, to overcome these problems, we must first improve quality level of steel cord itself, strengthen its own brand building, improve the degree of visibility and reputation, the, due to the volume of domestic demand growth is slowing, in ensuring the quality level but also to develop in the direction of exports.