The major economic indicators of the industry realized slight growth in Jan.-Feb. 2012, and the starting status was apparently weaker than the same period of the last year. The export is not promising, but there are trends for improvement of industrial operation status.

1. Industry Operation in Jan.-Feb. 2012

According to the statistics on 417 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, the realized gross industrial output value at the current price was RMB 44.26 billion yuan with the year-on-year growth of 9.19%; the realized sales revenue was RMB 43.546 billion yuan with the year-on-year growth of 6.65%; and the realized export delivery value was RMB 12.468 billion yuan with the year-on-year growth of 7.68%. The realized profit and tax of the industry was RMB 2.369 billion yuan with the year-on-year growth of 33.6%, and the realized profit was RMB 1.365 billion yuan with the year-on-year growth of 49.59%. Among the 349 key enterprises (excluding those engaged in rubber chemicals and framework materials), 76 enterprises had deficits with the deficit range of 21.78%; and the deficit amount was RMB 203 million yuan. Refer to Fig. 1 for growths of gross industrial output value at current price of the industries and specialized industries listed on the statistics of CRIA in Jan.-Feb. 2012. Refer to Fig. 2 for the main indicator growth of rubber industry in Jan.-Feb. 2011 and 2012. Refer to Fig. 3 for the year-on-year growth of main indicators of rubber industry of 2012.

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

Industries Listed on the Statistics of CRIA in Jan.-Feb. 2012

Fig. 2 Main Indicator Growth of Rubber Industry in Jan.-Feb. 2011 and 2012

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

1.1 Tires

In Jan.-Feb. 2012, compared with the same period of last year, the gross industrial output value at current price increased by 10.22%, the sales revenue increased by 3.9%, the comprehensive casing output decreased by 0.25%, the radial tire output increased by 0.64%, and the all steel radial tire output increased by 3.56% with the radial rate reaching 87.19% with the year-on-year growth of 0.78%. The export tire delivery value increased by 4.06%, and the export rate (value) reached 32.12% with the year-on-year decrease of 1.9%.

Fig. 4 Main Indicator Growth of Tires in Jan.-Feb. 2011 and 2012

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

1.2 Cycle tires

In Jan.-Feb. 2012, compared with the same period of last year, the gross industrial output value at current price increased by 5.05%, and the sales revenue increased by 8.51%; among the leading products, the bicycle casing output decreased by 6.06%, and the motorcycle casing output increased by 4.98%. The export delivery value increased by 25.2% compared with the same period of last year, and the export rate (value) reached 25.05%, which increased by 4.03%.

Fig. 6 Main Indicator Growth of Cycle Tires in Jan.-Feb. 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 48 key enterprises of rubber hoses & rubber belts in Jan.-Feb. 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.-Feb. 2012, compared with the same period of last year, the gross industrial output value at current price increased by 11.4%, and the sales revenue increased by 15.56%; the main product conveyor belt output increased by 13.81%, the V belt output increased by 12.45%, and the rubber hose output decreased by 3.62%. The export delivery value increased by 12.86%, and the export rate (value) reached 14.58%, which increased by 0.19%.

Fig. 8 Main Indicator Growth of Rubber Hoses & Rubber Belts in Jan.-Feb. 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.-Feb. 2011 and 2012. Refer to Fig. 11 for the year-on-year growth of main indicators of rubber products of 2012.

In Jan.-Feb. 2012, compared with the same period of last year, the gross industrial output value at current price decreased by 14.66%, and the sales revenue increased by 5.52%; the main product “O” rings decreased by 58.2%, and the auto anti-vibration articles decreased by 40.34%. The export delivery value decreased by 18.26%, and the export rate (value) reached 23.2%, which decreased by 1.02%.

Fig. 10 Main Indicator Growth of Rubber Products in Jan.-Feb. 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.-Feb. 2011 and 2012. Refer to Fig. 13 for the year-on-year growth of main indicators of latexes of 2012.

In Jan.-Feb. 2012, compared with the same period of last year, the gross industrial output value increased by 19.83%, and the sales revenue increased by 11.34%; the main product condom output increased by 1.32%, the medical gloves output increased by 2.07%, and the examination gloves output decreased by 12.17%. The export delivery value decreased by 1.12%, and the export rate (value) reached 47.33%, which decreased by 10.03%.

Fig. 12 Main Indicator Growth of Latexes in Jan.-Feb. 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.-Feb. 2011 and 2012. Refer to Fig. 15 for the year-on-year growth of main indicators of rubber shoes of 2012.

In Jan.-Feb. 2012, compared with the same period of last year, the industrial output value at current price increased by 11.04%, the sales revenue decreased by 1.89%, and the rubber shoes output decreased by 0.98%. The export of rubber shoes decreased by 2.11%, and the export rate (volume) reached 10.5%, which decreased by 0.12%.

Fig. 14 Main Indicator Growth of Rubber Shoes in Jan.-Feb. 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 37 key enterprises of carbon black in Jan.-Feb. 2011 and 2012. Refer to Fig. 17 for the year-on-year growth of main indicators of carbon black of 2012.

In Jan.-Feb. 2012, compared with the same period of last year, the industrial output value at current price increased by 10.87%, and the sales revenue increased by 18.12%; the gross carbon black output increased by 21.51%, in which the wet carbon black output increased by 23.95%. The export delivery value increased by 239.6%, and the export rate (value) reached 16.64%, which increased by 11.21%.

Fig. 16 Main Indicator Growth of Carbon Black in Jan.-Feb. 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 57 key enterprises of waste rubber in Jan.-Feb. 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.-Feb. 2012, compared with the same period of last year, the industrial output value at current price increased by 13.28%, and the sales revenue increased by 18.46%. The produced reclaimed rubber increased by 9.7% and the produced rubber powder increased by 6.09%. The export delivery value increased by 9.99%; and the export rate (value) reached 5.6%, which decreased by 0.17%.

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

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

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.-Feb. 2011 and 2012. Refer to Fig. 21 for the year-on-year growth of main indicators of moulds of 2012.

In Jan.-Feb. 2012, compared with the same period of last year, the industrial output value at current price increased by 26.56%, and the sales revenue increased by 26.59%; the radial tire mould output increased by 13.73%. The export delivery value increased by 22.09%, and the export rate (value) reached 8.94%, which decreased by 0.33%.

Fig. 20 Main Indicator Growth of Moulds in Jan.-Feb. 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.-Feb. 2011 and 2012. Refer to Fig. 23 for the year-on-year growth of main indicators of rubber chemicals of 2012.

In Jan.-Feb. 2012, compared with the same period of last year, the gross industrial output value increased by 15.31%, the sales revenue increased by 18.78%, and the gross rubber chemicals output increased by 19.97%, in which, the main product accelerating agent output increased by 9.0%, and the anti deteriorant output increased by 13.73%. The export delivery value increased by 19.08%, and the export rate (value) reached 31.79%, which increased by 0.08%.

Fig. 22 Main Indicator Growth of Rubber chemicals in Jan.-Feb. 2011 and 2012

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

1.11 Framework materials

In Jan.-Feb. 2012, 23 key enterprises of framework materials produced framework materials of 365,000 tons in total, including fiber cord fabrics of 55,500 tons with a year-on-year growth of 4.72%, steel cord of 221,000 tons with a year-on-year decrease of 2.64%, and bead wire of 88,000 tons with a year-on-year growth of 9.32%.

2. Market Situation in Jan.-Feb. 2012

2.1 Sales prices of tires

According to the monitoring on the retail prices of 4 kinds of truck radial tires and 4 kinds of radial passenger tires in the market, with the base point of January 2011, upon computation, the price index of all steel radial tire in Jan.-Feb. 2012 is 106.19, increased by 0.51 compared with that of the last month; and the price index of semi-steel radial tire is 99.09, decreased by 1.19 compared with that of 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 Manufacturers, in February 2012, the production and sales of automobiles had rapid month-on-month and year-on-year growths, in which, the month-on-month growth of commercial vehicles was apparently greater than that of passenger cars. In Jan.-Feb., compared with the same period of the last year, the production and sales of automobiles decreased slightly.

In February, the production of automobiles reached 1608.7 thousand vehicles, with a month-on-month growth of 23.79% and year-on-year growth of 28.48%; and the sales of automobiles reached 1567.1 thousand vehicles, with a month-on-month growth of 12.75% and year-on-year growth of 24.51%. Among the main automobile varieties, the production of passenger cars reached 1261.5 thousand vehicles, with a month-on-month growth of 19.74% and year-on-year growth of 31.26%; and the sales of passenger cars reached 1213.1 thousand vehicles, with a month-on-month growth of 4.53% and year-on-year growth of 26.52%. The production of commercial vehicles reached 347.2 thousand vehicles, with a month-on-month growth of 41.15% and year-on-year growth of 19.31%; and the sales of commercial vehicles reached 354 thousand vehicles, with a month-on-month growth of 54.37% and year-on-year growth of 18.08%. In Jan.-Feb., the production and sales of automobiles reached 2903.5 thousand vehicles and 2954.3 thousand vehicles with the year-on-year decreases of 4.93% and 5.96%; in which, the production and sales of passenger cars reached 2315 thousand vehicles and 2373.7 thousand vehicles, with the year-on-year decreases of 1.68% and 4.37% respectively; and the production and sales of commercial vehicles reached 588.5 thousand vehicles and 580.6 thousand vehicles, with the year-on-year decreases of 15.87% and 11.91% respectively.

In February 2012, the production and sales of motorcycles increased on the basis of low base. In Jan.-Feb., the production and sales of motorcycles of the whole industry had year-on-year decreases. In February, the realized production and sales of motorcycles of the whole industry reached 1818.7 thousand vehicles and 1843.4 thousand vehicles, with month-on-month growths of 11.97% and 7.34% respectively and year-on-year growths of 14.88% and 12.80% respectively; in which, the production and sales of two-wheel motorcycles reached 1635.4 thousand vehicles and 1657.6 thousand vehicles, with month-on-month growths of 10.19% and 4.80% respectively and year-on-year growths of 12.89% and 10.88% respectively; and the production and sales of tri-wheel motorcycles reached 183.3 thousand vehicles and 185.8 thousand vehicles, with month-on-month growths of 30.85% and 36.96% respectively and year-on-year growths of 36.37% and 33.37% respectively. In Jan.-Feb., the production and sales of motorcycles of the whole industry reached 3443.1 thousand vehicles and 3560.8 thousand vehicles with the year-on-year decreases of 7.90% and 8.15%; in which, the production and sales of two-wheel motorcycles reached 3119.7 thousand vehicles and 3239.3 thousand vehicles, with the year-on-year decreases of 8.86% and 8.99% respectively; and the production and sales of tri-wheel motorcycles reached 323.4 thousand vehicles and 321.5 thousand vehicles, with the year-on-year growths of 2.54% and 1.26% respectively.

2.3 Import of NR and compound rubber

According to the data statistics of China Customs, in February 2012, the imported TSNR was 94,500 tons, increased by 16.1% compared with the same period of the last year, and the imports was USD 339 million, decreased by 17.2% compared with the same period of the last year; other imported unvulcanized compound rubber in primary forms in February was 59,600 tons, increased by 55.6% compared with the same period of the last year, and the imports was USD 207 million, increased by 10.8% 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 Jan.-Feb. 2012, the highest sales price of imported 3# rubber smoked sheet was RMB 30,400 yuan/ton with the month-on-month growth of 1.33%; the highest sales price of 5# standard rubber was RMB 31,800 yuan/ton with the month-on-month growth of 10.42%; the highest sales price of 20# standard rubber was RMB 30,500 yuan/ton with the month-on-month growth of 12.96%; the highest sales price of BR was RMB 29,000 yuan/ton with the month-on-month growth of 12.4%; and the highest sales price of 1500 SBR was RMB 26,000 yuan/ton with the month-on-month growth of 13.04%.

3. Main Characteristics and Analysis of Industry Economy Operation in Jan.-Feb. 2012

3.1 Main economic indicators of the industry increased slightly.

After basically eliminating the influences of Spring Festival holiday on the working days, in Jan.-Feb. of this year, the industrial output value at current price of main economic indicators of the industry and the sales revenue realized slight year-on-year growths of 9.19% and 6.65%, in which, the industrial output value at current price and the sales revenue of tire industry realized year-on-year growths of 10.22% and 3.9% respectively; the industrial output value at current price and the sales revenue of cycle tire industry realized year-on-year growths of 5.05% and 8.51% respectively; and the industrial output value at current price and the sales revenue of rubber hoses & rubber belts industry realized year-on-year growths of 11.4% and 15.56% respectively.

3.2 The overall starting status of the industry is weaker than that of the last year.

In Jan.-Feb. of this year, the declining trend of the last year was unchanged. The growth of main economic indicators is lower than that of the last year, in which, the growth of industrial output value at current price had a year-on-year decrease of 7.99%, and the growth of sales revenue had a year-on-year decrease of 16.58%. However, the status differed slightly in different specialized industries. The growths of industrial output value at current price and the sales revenue of tire industry decreased by 8.91% and 23.76% respectively compared with those of the last year; and the growths of industrial output value at current price and the sales revenue of cycle tire industry increased by 2.68% and 5.0% respectively compared with those of the last year.

3.3 The export status of the industry was in downturn and only realized growth of single-digit.

The faltering demand of international market and the continual appreciation of RMB brought unheard-of difficulties to the industry export. Recently, the soaring price of international crude oil further slowed down the economic recovery of developed countries in Europe, America, etc. and increased the uncertainty of industry export. According to the statistics of CRIA on key member enterprises, in Jan.-Feb., the export delivery value of the industry only increased by 7.68% compared with the same period of the last year, in which, the export delivery value of tire industry increased by 4.06%, the export delivery value of cycle tire industry increased by 25.2%, the export delivery value of rubber hoses & rubber belts industry increased by 12.9%, and the export delivery value of rubber product industry increased by -18.3%.

3.4 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.-Feb., the profit rate of sales revenue of the whole industry reached 3.13% with a year-on-year growth of 0.9%, in which, the profit rate of sales revenue of tire industry reached 3.03% with a year-on-year growth of 1.09%, the profit rate of sales revenue of cycle tire industry reached 6.89% with a year-on-year growth of 2.75%, and the profit rate of sales revenue of rubber hoses & rubber belts industry reached 4.75% with a year-on-year growth of 1.18%. However, the rebounding price of bulk raw materials such as NR recently and the soaring price of product oil will sharpen the cost pressure of the industry.

3.5 Influenced by downstream demand, the output of rubber products such as tire showed negative growth.

In the first two months of this year, both the production and sales of automobile industry were in negative growth. Without the driving of automobile industry, the output of rubber products such as tire showed negative growth, in which, the output of tire comprehensive casing had a year-on-year decrease of 0.25%.

3.6 The output growths of such products as carbon black, rubber chemicals and moulds increased compared with those of the last year.

According to the statistics of CRIA on key member enterprises, the output growths of upstream rubber products such as carbon black, rubber chemicals and moulds increased compared with the same period of the last year, in which, the carbon black output had a year-on-year growth of 21.51% and the growth increased by 13.34% compared with the same period of the last year; the rubber ingredient output had a year-on-year growth of 19.97% and the growth increased by 21.79% compared with the same period of the last year; and the mould output had a year-on-year growth of 13.73% and the growth increased by 6.5% compared with the same period of the last year.