High demand for overloaded tire production lines enterprises rushing orders for the Chinese New Year
Since the beginning of this year, the overseas demand in the tire industry has been strong, and tire companies have had ample orders. This Spring Festival of the the Year of the Loong, the upstream and downstream of the tire industry chain ushered in a busy holiday, and rush work became the new normal of the industry.
According to the statistics of Cheyuan Rut Network, the production suspension period of tire enterprises during the Spring Festival of the Year of the Loong has been shortened, and semi steel tire enterprises have fewer days off, or even do not have holidays. From the external statements of several listed tire companies, it can be seen that they are basically unable to stay idle.
Linglong Tire stated that the company’s semi steel tire production schedule is basically at full capacity, and all steel tires will be arranged reasonably according to the situation of different factories. The specific holiday situation needs to be determined by the unified arrangement of the production department. According to the triangle tire department, due to a large number of orders, the workshop will have a four-five day holiday during the Spring Festival, which is two days less than last year. Senqilin’s Thailand factory will not stop working, while the Qingdao factory will stop working for two to three days to inspect and maintain the machines. The warehouse is expected to ship normally and still operate at full capacity.
Due to the approaching Spring Festival holiday and an increase in resident travel, the demand for semi steel tires has improved, and sales in some terminal stores have increased. Therefore, the production of semi steel tires by tire companies continues to maintain a hot momentum, and the production of semi steel tires by tire companies remains at a high level. At the same time, the sufficient volume of foreign trade orders for semi steel tires has provided support for the overall production. In addition, due to the shortage of previous orders, most tires have actively started production and reserved inventory before the holiday. Currently, the overall inventory is relatively low, and some enterprises are lower than the same period last year.
Compared with semi steel tires, the situation of all steel tires is somewhat lukewarm. Due to the decrease in demand for replacement in the retail market of truck tires in mid January, the demand for all steel tires is insufficient.
Data shows that as of February 1st, the operating rate of semi steel tire factories was 78.48%, far higher than that of all steel tire enterprises. The operating rate of all steel tire factories was 56.42%, and the operating rate gradually decreased.
According to feedback from securities firms conducting research on listed companies such as Linglong Tire, Sailun Tire, and Senqilin, most companies are currently experiencing orders exceeding production capacity, and some companies are also experiencing significant supply gaps. They are expanding their overseas tire companies, and their overseas bases are maintaining a state of supply shortage.
At present, upstream of the tire industry chain, including key raw materials such as natural rubber, synthetic rubber, steel cord, carbon black, and synthetic fiber, related enterprises are also experiencing a peak of construction driven by tire demand.
Post time: Feb-22-2024