The major economic indicators of the industry realized slight growth in the Jan.-Apr. 2012, and the starting status was steady as the same period of the last year. The industry export was in slump, with growth greatly weaker than the same period of the last year. Benefit status of the industry showed optimistic trend.

1. Industry Operation in Jan. - Apr. 2012

According to the statistics on 413 key member enterprises under 11 branches respectively engaged in tires, cycle tires, rubber hoses & rubber belts, rubber products, rubber shoes, latexes, carbon black, comprehensive utilization of waste rubber, machinery moulds, rubber chemicals and framework materials, in Jan. - Apr., the realized industrial output value at the current price was RMB 99.733 billion yuan with the year-on-year growth of 7.9%; the realized sales revenue was RMB 98.517 billion yuan with the year-on-year growth of 7.21%; and the realized export delivery value was RMB 28.947 billion yuan with the year-on-year growth of 14.01%. The realized profit and tax of the industry was RMB 6.484 billion yuan with the year-on-year growth of 31.75%, and the realized profit was RMB 4.06 billion yuan with the year-on-year growth of 43.27%. Among the 345 key enterprises (excluding those engaged in rubber chemicals and framework materials), 55 enterprises had deficits with the deficit range of 15.94%; and the deficit amount was RMB 269 million yuan with the year-on-year decrease of 34.8%. Refer to Fig. 1 for the growth of industrial output value at current price of the industries and specialized industries listed on the statistics of CRIA in Jan. – Apr. 2012. Refer to Fig. 2 for the main indicator growth of rubber industry in Jan. – Apr. 2011 and 2012. Refer to Fig. 3 for the year-on-year growth of main indicators of rubber industry of 2012.

Fig. 1 Growth of Gross Industrial Output Value of the Industries and Specialized

Industries Listed on the Statistics of CRIA in Jan. – Apr. 2012

Fig. 2 Main Indicator Growth of Rubber Industry in Jan. – Apr. 2011 and 2012

Fig. 3 Year-on-year Growth of Main Indicators of Rubber Industry of 2012

1.1 Tires

Refer to Fig. 4 for the main indicator growth of tires of the 45 key member enterprises of tires in Jan. – Apr. 2011 and 2012. Refer to Fig. 5 for the year-on-year growth of main indicators of tires of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the industrial output value at current price increased by 7.63%, the sales revenue increased by 6.3%, the comprehensive casing output increased by 0.88%, the radial tire output increased by 1.3%, and the all steel radial tire output increased by 5.2% with the radial rate reaching 87.22% with the year-on-year growth of 0.36%. The export tire delivery value increased by 12.59%, and the export rate (value) reached 33.43% with the year-on-year decrease of 1.47%. The export tire delivery volume increased by 3.81%, and the export rate (volume) reached 42.57% with the year-on-year growth of 1.2%.

Fig. 4 Main Indicator Growth of Tires in Jan. – Apr. 2011 and 2012

Fig. 5 Year-on-year Growth of Main Indicators of Tires of 2012

1.2 Cycle tires

Refer to Fig. 6 for the main indicator growth of cycle tires of the 30 key enterprises of cycle tires in Jan. – Apr. 2011 and 2012. Refer to Fig. 7 for the year-on-year growth of main indicators of cycle tires of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the gross industrial output value at current price increased by 4.02%, and the realized sales revenue increased by 6.48%; among the leading products, the bicycle casing output decreased by 5.26%, the motorcycle casing output increased by 5.22%, and the motor-assisted bicycle casing output increased by 110.3%. The realized export delivery value increased by 25.03% compared with the same period of last year, and the export rate (value) reached 21.81%, which increased by 3.67%.

Fig. 6 Main Indicator Growth of Cycle Tires in Jan. – Apr. 2011 and 2012

Fig. 7 Year-on-Year Growth of Main Indicators of Cycle Tires of 2012

1.3 Rubber hoses & rubber belts

Refer to Fig. 8 for the main indicator growth of rubber hoses & rubber belts of the 51 key enterprises of rubber hoses & rubber belts in Jan. – Apr. 2011 and 2012. Refer to Fig. 9 for the year-on-year growth of main indicators of rubber hoses & rubber belts of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the gross industrial output value at current price increased by 13.52%, and the realized sales revenue increased by 10.54%; the main product conveyor belt output increased by 16.31%, the V belt output increased by 10.09%, and the rubber hose output decreased by 8.73%. The export delivery value increased by 0.14%, and the export rate (value) reached 13.02%, which decreased by 1.74%.

Fig. 8 Main Indicator Growth of Rubber Hoses & Rubber Belts in Jan. – Apr. 2011 and 2012

Fig. 9 Year-on-Year Growth of Main Indicators of Rubber Hoses & Rubber Belts of 2012

1.4 Rubber products

Refer to Fig. 10 for the main indicator growth of rubber products of the 50 key enterprises of rubber products in Jan. – Apr. 2011 and 2012. Refer to Fig. 11 for the year-on-year growth of main indicators of rubber products of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the gross industrial output value at current price decreased by 10.85%, and the realized sales revenue decreased by 1.98%; the main product “O” rings decreased by 42.4%, and the auto anti-vibration articles decreased by 41.31%. The realized export delivery value decreased by 2.93%, and the export rate (value) reached 26.58%, which increased by 3.56%.

Fig. 10 Main Indicator Growth of Rubber Products in Jan. – Apr. 2011 and 2012

Fig. 11 Year-on-Year Growth of Main Indicators of Rubber Products of 2012

1.5 Latexes

Refer to Fig. 12 for the main indicator growth of latexes of the 29 key enterprises of latexes in Jan. – Apr. 2011 and 2012. Refer to Fig. 13 for the year-on-year growth of main indicators of latexes of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the industrial output value at current price increased by 13.07%, and the realized sales revenue increased by 6.95%; the main product condom output decreased by 1.39%, the medical gloves output decreased by 5.21%, and the examination gloves output decreased by 15.78%. The realized export delivery value increased by 0.5%, and the export rate (value) reached 47.05%, which decreased by 6.42%.

Fig. 12 Main Indicator Growth of Latexes in Jan. – Apr. 2011 and 2012

Fig. 13 Year-on-Year Growth of Main Indicators of Latexes of 2012

1.6 Rubber shoes

Refer to Fig. 14 for the main indicator growth of rubber shoes of the 28 key enterprises of rubber shoes in Jan. – Apr. 2011 and 2012. Refer to Fig. 15 for the year-on-year growth of main indicators of rubber shoes of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the industrial output value at current price increased by 0.77%, the realized sales revenue decreased by 6.21%, and the realized rubber shoes output decreased by 4.68%. The export of rubber shoes decreased by 8.4%, and the export rate (volume) reached 6.71%, which decreased by 0.96%.

Fig. 14 Main Indicator Growth of Rubber Shoes in Jan. – Apr. 2011 and 2012

Fig. 15 Year-on-Year Growth of Main Indicators of Rubber Shoes of 2012

1.7 Carbon black

Refer to Fig. 16 for the main indicator growth of carbon black of the 36 key enterprises of carbon black in Jan. – Apr. 2011 and 2012. Refer to Fig. 17 for the year-on-year growth of main indicators of carbon black of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the industrial output value at current price increased by 11.26%, and the realized sales revenue increased by 12.2%; the gross carbon black output increased by 19.56%, in which the wet carbon black output increased by 22.68%. The export delivery value increased by 95.45%, and the export rate (value) reached 17.33%, which increased by 7.47%.

Fig. 16 Main Indicator Growth of Carbon Black in Jan. – Apr. 2011 and 2012

Fig. 17 Year-on-Year Growth of Main Indicators of Carbon Black of 2012

1.8 Comprehensive utilization of waste rubber

Refer to Fig. 18 for the main indicator growth of comprehensive utilization of waste rubber of the 52 key enterprises of waste rubber in Jan. – Apr. 2011 and 2012. Refer to Fig. 19 for the year-on-year growth of main indicators of comprehensive utilization of waste rubber of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the industrial output value at current price increased by 21.65%, and the sales revenue increased by 19.77%. The produced reclaimed rubber increased by 8.7% and the produced rubber powder increased by 22.98%. The realized export delivery value increased by 7.36%; and the export rate (value) reached 5.27%, which decreased by 0.7%.

Fig. 18 Main Indicator Growth of Comprehensive Utilization of Waste Rubber in Jan. – Apr. 2011 and 2012

Fig. 19 Year-on-Year Growth of Main Indicators of Comprehensive Utilization of Waste Rubber of 2012

1.9 Machinery moulds

Refer to Fig. 20 for the main indicator growth of moulds of the 26 key enterprises of machinery moulds in Jan. – Apr. 2011 and 2012. Refer to Fig. 21 for the year-on-year growth of main indicators of moulds of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the industrial output value at current price increased by 8.5%, and the realized sales revenue increased by 8.94%; the radial tire mould output increased by 17.1%. The realized export delivery value increased by 8.0%, and the export rate (value) reached 13.2%, which decreased by 0.11%.

Fig. 20 Main Indicator Growth of Moulds in Jan. – Apr. 2011 and 2012

Fig. 21 Year-on-Year Growth of Main Indicators of Moulds of 2012

1.10 Rubber chemicals

Refer to Fig. 22 for the main indicator growth of rubber chemicals of the 45 key enterprises of rubber chemicals in Jan. – Apr. 2011 and 2012. Refer to Fig. 23 for the year-on-year growth of main indicators of rubber chemicals of 2012.

In Jan. – Apr. 2012, compared with the same period of last year, the realized gross industrial output value increased by 24.02%, the realized sales revenue increased by 19.83%, and the gross rubber chemicals output increased by 29.08%, in which, the main product accelerating agent output increased by 11.69%, and the anti deteriorant output increased by 28.54%. The export delivery value increased by 16.78%, and the export rate (value) reached 31.89%, which decreased by 0.83%.

Fig. 22 Main Indicator Growth of Rubber Chemicals in Jan. – Apr. 2011 and 2012

Fig. 23 Year-on-Year Growth of Main Indicators of Rubber Chemicals of 2012

1.11 Framework materials

In Jan. – Apr. 2012, 23 key enterprises of framework materials produced framework materials of 785,000 tons in total, including fiber cord fabrics of 121,000 tons with a year-on-year growth of 13.08%, steel cord of 475,000 tons with a year-on-year growth of 6.03%, and bead wire of 189,000 tons with a year-on-year growth of 8.62%.

2. Market Situation in Jan. – Apr. 2012

2.1 Sales prices of tires

According to the monitoring on the retail prices of 4 kinds of truck radial tires (12.00R20-18PR, 11.00R20-16PR, 12R22.5-16PR and 8.25R16-16PR) and 4 kinds of radial passenger tires (215/55R16, 205/55R16, 195/55R15 and 165/70R14) in the market, with the base point of January 2011, upon computation, the price index of all steel radial tire in April 2012 is 105.8, decreased by 0.19 compared with the last month; and the price index of semi-steel radial passenger tire is 101.99, decreased by 1.16 compared with the last month.

Refer to Fig. 24 for the price index trend of truck tires and passenger tires.

Fig. 24 Price Index Trend of Truck Tires and Passenger Tires

2.2 Production and sales of automobiles and motorcycles

According to the statistics by China Association of Automobile Manufactures, in April 2012, the production and sales of the automobiles reached 1,647,600 and 1,624,400 vehicles respectively, decreased by 12.39% and 11.65% respectively compared with the last month, and increased by 7.81% and 5.19% respectively compared with the same period of the last year. In Jan. – Apr., the production and sales of the automobiles reached 6,431,900 and 6,417,500 vehicles respectively, increased by 0.47% and decreased by 1.33% slightly compared with the same period of the last year.

In April, the production and sales of the motorcycles reached 1,994,900 and 1,982,600 vehicles respectively, decreased by 4.92% and 4.18% respectively compared with the last month, and decreased by 16.23% and 14.18% respectively compared with the same period of the last year. In Jan. – Apr., the production and sales of the motorcycles reached 7,536,200 and 7,612,600 vehicles respectively, decreased by 10.9% and 10.28% compared with the same period of the last year.

2.3 Import of NR and compound rubber

According to the data statistics of China Customs, in April 2012, the imported TSNR was 128,500 tons, decreased by 4.0% compared with the same period of the last year, and the imports was USD 488 million, decreased by 29.9% compared with the same period of the last year; other imported unvulcanized compound rubber in primary forms in April was 42,300 tons, decreased by 25.1% compared with the same period of the last year, and the imports was USD 158 million, decreased by 46.6% compared with the same period of the last year. Refer to Fig. 25 for the price trend of TSNR since 2009.

Fig. 25 Price Trend of TSNR

2.4 Prices of bulk raw materials

In Aril 2012, the highest sales price of imported 3# rubber smoked sheet was RMB 30,200 yuan/ton, decreased by 0.66% compared with the last month; the highest sales price of 5# standard rubber was RMB 29,800 yuan/ton, decreased by 6.29% compared with the last month; the highest sales price of 20# standard rubber was RMB 28,800 yuan/ton, decreased by 5.57% compared with the last month; the highest sales price of BR was RMB 28,800 yuan/ton, decreased by 0.69% compared with the last month; and the highest sales price of 1500 SBR was RMB 25,000 yuan/ton, increased by 3.85% compared with the last month.

3. Main Characteristics and Analysis of Industry Economy Operation in Jan. – Apr. 2012

3.1 The growths of major economic indicators of the industry in Jan. – Apr. were all weaker than the same period of the last year, and only realized slight growths. However, the growths showed steady trend.

Among the major economic indicators of the industry in Jan. – Apr. this year, compared with the same period of the last year, the industrial output value at current price increased by 7.9% with the growth decreased by 11.37%; and the sales revenue increased by 7.21% with the growth decreased by 12.67%, in which, the industrial output value at current price and the sales revenue of tire industry realized year-on-year growths of 7.63% and 6.3% respectively, with the growths decreased by 14.23% and 15.67% compared with the same period of the last year; the industrial output value at current price and the sales revenue of cycle tire industry realized year-on-year growths of 4.02% and 6.48% respectively, with the growths decreased by 2.25% and 1.29% compared with the same period of the last year; and the industrial output value at current price and the sales revenue of rubber hoses & rubber belts industry realized year-on-year growths of 13.52% and 10.54% respectively, with the growths decreased by 0% and 4.99% compared with the same period of the last year.

Although the growths in Jan. – Apr. were limited, the continual narrowing trend of the above two indicators in recent two years changed and showed steady trend.

3.2 The industry export was in slump, with growth greatly weaker than the same period of the last year.

According to the statistics of CRIA on key member enterprises, in Jan. – Apr., compared with the same period of the last year, the export delivery value of the industry only increased by 14.01%, with the growth decreased by 15.74%, in which, the export delivery value of tire industry only increased by 12.59%, with the growth decreased by 18.41%.

3.3 Benefit status of the industry showed optimistic trend.

According to the statistics of CRIA on member enterprises, the economic benefits of the industry showed optimistic trend in Jan. – Apr.. The profit rate of sales revenue of the industry reached 4.12% with a year-on-year growth of 1.04% and month-on-month growth of 0.41%, in which, the profit rate of sales revenue of tire industry reached 3.87% with a year-on-year growth of 1.31%, the profit rate of sales revenue of cycle tire industry reached 7.2% with a year-on-year growth of 1.35%, and the profit rate of sales revenue of rubber hoses & rubber belts industry reached 6.1% with a year-on-year growth of 1.37%.

However, in Jan. – Apr. 2012, the benefits of rubber industry is better than last year. Recently the prices of bulk raw materials such as NR and SR fell sharply, which is not conducive to the cost control, and also the improvement of the operating conditions.