As a "country on the tires", the United States has always maintained a high demand for tires. According to statistics from the US Department of Commerce, the amount of tires exported to the US market in 2011 surged by 22%.
According to the agency's data, tire imports from passenger cars, light trucks, medium trucks or cars have exceeded $10.5 billion. Canada and China are still among the top four trading partners, with transaction volumes of $1.93 billion and $1.82 billion, respectively.
Last year, although the tires of automobiles and light trucks were stagnant, the import volume of medium-sized trucks and automobile tires surged by more than 16.5% compared with 2010, and exceeded 10 million for the first time.
Whether the growth rate of the tire market can keep pace with the import situation depends on the strategy of the US tire secondary market in the previous year. According to the Rubber Manufacturers Association, the US passenger car secondary market shrank 2.2% in 2011, dropping to $195 million. The secondary market for light truck tires paralleled last year, reaching $28.5 million.
On the other hand, according to data from the American Rubber Manufacturers Association and the Ministry of Commerce, the demand for medium- and heavy-duty truck tires in the secondary market increased by 4.4% to $16.5 million. This has led to truck tires accounting for the majority of US imports, and only China's truck tires exported to the United States accounted for 29.5%.
Due to the surge in imported tires, the US trade deficit on passenger cars, light and medium truck tires increased from 5.8% to 6.18% in 2011.
In 2011, the United States imposed high taxes on Chinese tires. Nevertheless, China is still one of the top five importers of American passenger tires.
Recently, Roy Arms, chairman of Cooper Tire & Rubber Co., expects the freight rate to expire as scheduled, which will put price pressure down, but it may not be as obvious as it was a year ago.
According to the financial results of the financial analysts in the first quarter, Ames does not believe that many customers will immediately transfer out and choose to import Chinese tires.
Last year's big winner in the car tire market share was Germany, which accounted for 37.1% of the tire market, Mexico accounted for 27.4%, Thailand was 19.3%, and Indonesia was 12%.
Tire imports from US light trucks increased by 0.2% last year to reach 20.6 million. Canada is the largest source, accounting for more than 42% of its imports.
China’s share of tires exported to the United States last year, although below 23.4%, is still second on the list, surpassing South Korea and Japan. Mexico’s share of light truck tires exported to the United States last year was almost three times that of the previous year, and Thailand and Indonesia also increased, by 73% and 43.9% respectively.
China accounts for almost half of the imports of medium-sized trucks and car tires, but the average import value of Chinese trucks and car tires is 30% lower than the average in the field.
According to forecasts, the amount of tires exported from Mexico to the United States may continue to increase in the coming year, as Pirelli Tyre’s production continues to increase this year. Last year, tires exported from Japan to the United States fell to 17.2%. This partly reflects the destruction of the production of the main island of Japan on the Pacific coast in March 2011 by the earthquake and tsunami.
Although US tire imports increased significantly last year, in fact, the US tire industry exports have risen in all three areas, although most of them are exported to Canada and Mexico. In the trading volume of light and medium truck tires, the United States and Mexico even maintain a trade surplus.
In 2011, despite the impact of the tire special protection case, China's tire exports were subject to certain restrictions. However, due to the strong demand in the US market and the price advantage of Chinese tires, China's tire export volume has remained stable and rising. Faced with the strong competition in the international tire industry, Chinese tire companies must strengthen brand marketing and form a brand effect while ensuring quality advantages and price advantages. Only in this way can we seize market opportunities and promote the development of the tire industry in China.
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