According to statistics of China Rubber Industry Association on 407 key member companies of eleven branches including tires, cycle tires, rubber hoses and belts, rubber products, rubber shoes, latexes, carbon black, comprehensive utilization of waste rubber, rubber machinery moulds, rubber agent and framework materials, main economic indicators in the rubber industry—industrial output value at current price, sales revenue and export delivery value all significantly increased in 2017, reversing the flagging trend since 2012. But the profits of the industry dropped year on year, leading to declining gains. 

Data of 2017

See main economic operation indicators in the rubber industry in 2016~2017 in Chart 1. See the increase comparison of main economic operation indicators in the rubber industry in the last three years in Chart 2. All the following data come from statistics of China Rubber Industry Association on its main member companies. 

Chart 1: Main Economic Operation Indicators in the Rubber Industry in 2016~2017 

Chart 2: The Increase Comparison of Main Economic Operation Indicators in the Rubber Industry in the Past Three Years 

Remarks on Operation of the Industry

Sharp increase in the industrial output value at current price

In 2017, industrial output value at current price of the entire industry rose by 11.23%, a year-on-year (same below) increase of 8.30 percentage points, increasing by 22.81 percentage points compared with 2015 which had seen the worst economic operation in recent years, reversing the downturn in the industry since 2012.

Among which, all specific industries realized positive growth except that the rubber specific industry saw a negative growth (but the drop is narrower). Growth in the two specific industries of rubber agent and framework materials was lower than last year. The four specific industries of tires, cycle tires, carbon black and comprehensive utilization of waste rubber reversed the falling trend in the last year and realized positive growth. The four specific industries of rubber hoses and belts, rubber products, latexes and rubber machinery moulds maintained a constant growth in an accelerating way. See the increase in industrial output value at current price of all specific industries in 2016~2017 in Chart 3.

Chart 3: Increase in Industrial Output Value at Current Price of All Specific Industries in 2016~2017 

Sharp increase in the sales revenue

In 2017, the sales revenue across the industry rose by 14.99%, an increase of 10.56 percentage points, increasing by 26.29 percentage points compared with that of 2015 which had seen the worst economic operation in recent years, reversing the downturn in the industry since 2012.

Among which, all specific industries realized positive growth except that the rubber shoes specific industry continued the downturn since 2012 and saw negative growth in sales revenue. Growth in the rubber agent specific industry was lower than last year. The four specific industries of cycle tires, rubber hoses and belts, carbon black and comprehensive utilization of waste rubber reversed the falling trend in the last year. The five specific industries of tires, rubber products, latexes, rubber machinery moulds and framework materials maintained a constant growth in an accelerating way. See the increase in sales revenue of all specific industries in 2016~2017 in Chart 4.

Chart 4: Increase in Sales Revenue of All Specific Industries in 2016~2017 

Sharp increase in the export delivery value

In 2017, the export delivery value across the industry rose by 18.33%, an increase of 18.54 percentage points, increasing by 30.43 percentage points compared with 2015 which had seen the worst economic operation in recent years, reversing the downturn in the industry since 2012. The export rate (value) was 30.91%, increasing by 1.85 percentage points.

Among which, the export delivery values of the two specific industries of rubber hoses and belts and comprehensive utilization of waste rubber showed negative growth, the latter of which saw negative growth for a second consecutive year. Among the specific industries that saw positive growth, growth in the rubber shoes specific industry was lower than last year. The two specific industries of tires and carbon black reversed the falling trend in the last year and realized positive growth. The six specific industries of cycle tires, rubber products, latexes, rubber machinery moulds, rubber agent and framework materials maintained a constant growth in an accelerating way. See the increase in export delivery value of all specific industries in 2016~2017 in Chart 5. 

Chart 5: Increase in Export Delivery Value of All Specific Industries in 2016~2017 

Details of Specific Industries

Tire

In 2017, 41 key member companies realized a 9.54% increase in industrial output value at current price and a 13.25% increase in sales revenue. The comprehensive casing output increased by 5.08%, among which, the radial tire output increased by 6.15%, and the all steel radial tire output increased by 6.99% with the radial rate reaching 93.50%, an increase of 0.94 percentage points. The export delivery value rose by 17.39% with the export rate reaching 38.25%, an increase of 2.56 percentage points; delivery volume of exported tires rose by 9.39%, among which exported radial tires grew by 10.72%; the export rate (volume) was 47.38%, increasing by 1.87 percentage points. Realized profits and taxes of 38 companies dropped by 42.35%, causing gains to fall by 49.56%, and the rate of profit in sales revenue was 2.19%, decreasing by 2.71 percentage points. 14 companies suffered losses of up to RMB 1.868 Billion Yuan. The inventory of finished products rose by 19.49%. See the increase comparison of main indicators in the tire specific industry in 2015~2017 in Chart 6.

Chart 6: The Increase Comparison of Main Indicators in the Tire Specific Industry in 2015~2017 

Cycle tire

In 2017, 40 key companies realized a 6.67% increase in industrial output value at current price and a 7.69% increase in sales revenue. Among the leading products, the bicycle casing output increased by 7.54%, the electric bicycle casing output increased by 7.14%, and the motorcycle casing output decreased by 10.68%. The export delivery value increased by 8.89% with the export rate (value) reaching 27.76%, an increase of 0.57 percentage points. Realized profits and taxes dropped by 24.06%, causing gains to fall by 35.10%, and the rate of profit in sales revenue was 2.39%, decreasing by 1.58 percentage points. One company suffered losses of up to RMB 19.35 Million Yuan. The inventory of finished products rose by 14.26%. See the increase comparison of main indicators in cycle tire specific industry in 2015~2017 in Chart 7. 

Chart 7: The Increase Comparison of Main Indicators in the Cycle Tire Specific Industry in 2015~2017 

Rubber hoses and belts

In 2017, 49 key companies realized a 10.87% increase in industrial output value at current price and a 10.99% increase in sales revenue. Among the leading products, the conveyer belt output increased by 12.27%, the V belt output decreased by 5.82%, and the hose output increased by 17.69%. The export delivery value decreased by 10.11% with the export rate (value) reaching 9.52%, a decrease of 2.22 percentage points. Realized profits and taxes rose by 14.05%, causing gains to increase by 28.53%, and the rate of profit in sales revenue was 8.96%, increasing by 1.22 percentage points. Four companies suffered losses of up to RMB 52.48 Million Yuan. The inventory of finished products rose by 2.32%. See the increase comparison of main indicators in the rubber hoses and belts specific industry in 2015~2017 in Chart 8.

Chart 8: The Increase Comparison of Main Indicators in the Rubber Hoses and Belts Specific Industry in 2015~2017 

Rubber products

In 2017, 58 key companies realized a 16.52% increase in industrial output value at current price and a 14.59% increase in sales revenue. Among the leading products, the output of auto vibration insulators increased by 17.04%, and that of “O” seal rings increased by 5.20%. The export delivery value increased by 26.08% with the export rate (value) reaching 24.05%, an increase of 1.82 percentage points. Realized profits and taxes rose by 30.64%, causing gains to increase by 20.09%, and the rate of profit in sales revenue was 9.40%, increasing by 0.43 percentage points. Four companies suffered losses of up to RMB 6.84 Million Yuan. The inventory of finished products rose by 16.49%. See the increase comparison of main indicators in the rubber products specific industry in 2015~2017 in Chart 9.

Chart 9: The Increase Comparison of Main Indicators in the Rubber Products Specific Industry in 2015~2017 

Rubber shoes

In 2017, 25 key companies realized a 1.31% decrease in industrial output value at current price and a 0.89% decrease in sales revenue. The rubber shoes output decreased by 1.61%. The export delivery value increased by 0.11%, and the export rate (value) reached 14.35%, an increase of 0.43 percentage points. The export of rubber shoes increased by 22.74% with the export rate (volume) reaching 11.71%, an increase of 2.32 percentage points. Realized profits and taxes fell by 4.00%, the gains rose by 12.96%, and the rate of profit in sales revenue was 4.33%, increasing by 0.53 percentage points. Five companies suffered losses of up to RMB 49.66 Million Yuan. The inventory of finished products rose by 14.50%. See the increase comparison of main indicators in the rubber shoes specific industry in 2015~2017 in Chart 10.

Chart 10: The Increase Comparison of Main Indicators in the Rubber Shoes Specific Industry in 2015~2017 

Latex

In 2017, 27 key companies realized a 6.04% increase in industrial output value at current price and an 11.29% increase in sales revenue. Among the leading products, the condom output increased by 5.75%, the medical gloves output increased by 1.64%, and the examination gloves output increased by 13.04%. The export delivery value increased by 15.21%, and the export rate (value) reached 45.02%, an increase of 3.58 percentage points. Realized profits and taxes increased by 7.17%, the gains rose by 10.78%, and the rate of profit in sales revenue was 6.15%, decreasing by 0.03 percentage points. Six companies suffered losses of up to RMB 39.06 Million Yuan. The inventory of finished products fell by 8.12%. See the increase comparison of main indicators in the latexes specific industry in 2015~2017 in Chart 11.

Chart 11: The Increase Comparison of Main Indicators in the Latexes Specific Industry in 2015~2017 

Carbon black

In 2017, 35 key companies realized a 47.23% increase in industrial output value at current price and a 58.69% increase in sales revenue. The gross output of carbon black increased by 6.32%, among which the output of wet carbon black increased by 5.84%. The export delivery value increased by 43.63%, and the export rate (value) reached 13.03%, a decrease of 0.33 percentage points; the export of carbon black decreased by 0.95% with the export rate (volume) reaching 12.69%, a decrease of 0.93 percentage points. Realized profits and taxes rose by 126.84%, the gains rose by 494.24%, and the rate of profit in sales revenue was 6.17%, increasing by 4.52 percentage points. Four companies suffered losses of up to RMB 17.49 Million Yuan. The inventory of finished products rose by 30.19%. See the increase comparison of main indicators in the carbon black specific industry in 2015~2017 in Chart 12.

Chart 12: The Increase Comparison of Main Indicators in the Latexes Specific Industry in 2015~2017 

Rubber machinery moulds

In 2017, 21 key companies realized a 4.71% increase in industrial output value at current price and a 5.31% increase in sales revenue. The mould output increased by 5.44%, and the export delivery value increased by 34.63%, and the export rate (value) reached 48.98%, an increase of 10.89 percentage points. Realized profits and taxes rose by 3.73%, the gains rose by 2.90%, and the rate of profit in sales revenue was 8.41%, decreasing by 0.20 percentage points. The inventory of finished products rose by 5.08%. See the increase comparison of main indicators in the rubber machinery moulds specific industry in 2015~2017 in Chart 13.

Chart 13: The Increase Comparison of Main Indicators in the Rubber Machinery Moulds Specific Industry in 2015~2017 

Comprehensive utilization of waste rubber

In 2017, 31 key companies realized a 3.04% increase in industrial output value at current price and a 4.89% increase in sales revenue. Among the leading products, reclaimed rubber increased by 7.52%, the rubber powder increased by 2.38%. The export delivery value decreased by 15.92%; and the export rate (value) reached 2.63%, a decrease of 0.59 percentage points. Realized profits and taxes fell by 2.66%, the gains fell by 4.12%, and the rate of profit in sales revenue was 6.92%, decreasing by 0.65 percentage points. The inventory of finished products rose by 5.33%. See the increase comparison of main indicators in the comprehensive utilization of waste rubber specific industry in 2015~2017 in Chart 14.

Chart 14: The Increase Comparison of Main Indicators in the Comprehensive Utilization of Waste Rubber Specific Industry in 2015~2017 

Rubber agent

In 2017, 45 key companies realized a 4.67% increase in industrial output value at current price and a 3.49% increase in sales revenue. The gross output of rubber agent increased by 0.55%, among which the output of accelerant decreased by 0.27% and the output of anti-ager decreased by 1.94%. The export delivery value increased by 13.33%, and the export rate (value) reached 32.27%, an increase of 2.46 percentage points. The export of rubber agent increased by 9.61% with the export rate (volume) reaching 30.61%, an increase of 2.53 percentage points. See the increase comparison of main indicators in the rubber agent specific industry in 2015~2017 in Chart 15.

Chart 15: The Increase Comparison of Main Indicators in the Rubber Agent Specific Industry in 2015~2017 

Framework materials

In 2017, 20 companies realized a 0.14% increase in industrial output value at current price and a 22.96% increase in sales revenue. The export delivery value increased by 26.41%, and the export rate (value) reached 33.71%, an increase of 7.0 percentage points. Realized profits and taxes fell by 13.40%, the gains rose by 2.73%, and the rate of profit in sales revenue was 4.61%, decreasing by 0.91 percentage points. Six companies suffered losses of up to RMB 219 Million Yuan. The inventory of finished products rose by 33.86%.

In 2017, the gross output of framework materials of 35 companies rose by 5.94%, among which the output of fiber cord fabrics decreased by 0.71%, that of steel cord increased by 9.12%, that of tire bead steel wire increased by 0.73%, and that of hose belt steel wire increased by 17.30%. See the increase comparison of main indicators in the framework materials specific industry in 2016~2017 in Chart 16. 

Chart 16: The Increase Comparison of Main Indicators in the Framework Materials Specific Industry in 2016~2017 

State of Relevant Markets

Trend of selling prices of tires

After calculation based on the monitoring of retail prices of four truck radial tires (12.00R20-18PR, 11.00R20-16PR, 12R22.5-16PR and 8.25R16-16PR) and four auto radial tires (215/55R16, 205/55R16, 195/55R15 and 165/70R14) with the data of January 2011 as the basis point (the price index is 100), in December 2017, the price index of all-steel radial tire was 79.68, with a month-on-month decrease of 0.48 basis points and a year-on-year decrease of 0.80 basis points; the price index of semi-steel radial tire was 87.13, with a month-on-month decrease of 2.70 basis points and a year-on-year decrease of 3.01 basis points.

See the trend of price indexes of truck tires and auto tires in Chart 17 and Chart 18.

Chart 17: Trend of Price Indexes of Truck Tires 

Chart 18: Trend of Price Indexes of Auto Tires 

Price trend of imported natural rubber

See the price trend of imported TSNR since 2009 in Chart 19. 

Chart 19: Price Trend of Imported TSNR