Analysts: Chinese tire companies are expected to continue to increase market share

The U.S. Department of Commerce, on May 25, made a final anti-dumping and countervailing tax on passenger cars and light truck tire products from South Korea, Thailand, Vietnam and Taiwan, China. Among them, the anti-dumping rate of Linglong tire (601966.sh) is slightly lower than that of the preliminary determination, the anti subsidy rate of the racing wheel tire (601058.sh) is consistent with the preliminary determination result, while that of Sen Qilin (002984.sz) is slightly higher than the preliminary determination rate. Dong Secretary of a listed company in a tire industry said that the final decision of "double counter" has an impact on the company in the short term, but the impact is not great. The company will guarantee the gross profit rate of the products by reducing cost and increasing the price.

  It is reported that the final anti-dumping and countervailing duty rates are 14.72% - 27.05% in South Korea, 20.04% - 101.84% in Taiwan, 14.62% - 21.09% in Thailand and 0-22.27% in Vietnam; Vietnam's countervailing duty rate is 6.23% - 7.89%. Among them, the anti-dumping duty rate of Linglong tire was 21.09%; The anti-dumping duty rate is 0 and the countervailing duty rate is 6.23%; The anti-dumping duty rate of Mori Kirin is 17.08%, which is slightly higher than that of 16.66% in the preliminary ruling.
  According to the final adjudication results, the final adjudication results of anti-dumping are only 14.62% - 21.09% when the initial declared tax rate to Thailand is 106.4% - 217.5%; In the case of declaring tax rate of 14.73% - 33.06% to Vietnam, the result is only 0-22.27%. The result of the "double anti dumping" in the United States shows that some overseas factories of high-quality domestic tire enterprises have little or no actual dumping behavior, which has limited impact on Chinese tire enterprises and will not change the rising trend of Chinese tire enterprises in the long run.

  The United States has implemented the "double anti" policy on Chinese tires for five years. In addition to the continuous pressure on Chinese tires, the United States has also swung the "big stick" of tariffs to other Asian countries and regions. This round of "double anti" investigation started on May 13, 2020, covering tire products from South Korea, Thailand, Vietnam and Taiwan. According to the schedule disclosed by the US Department of Commerce, the US International Trade Commission will make a final ruling on the final ruling on July 5, 2021 us time.
  For this "relatively optimistic" result, Wang Shangzhen, an analyst of jinlianchuang rubber industry, said that after the epidemic, the US tire production capacity has not recovered and there is a shortage in China“ Last year, the tire production capacity of the United States dropped by more than 30%. This year, the situation has not changed. At present, the domestic market of car tires and truck tires in the United States is hot, and the supply exceeds the demand. The U.S. market can not give up the cost-effective Chinese tires. If the tax rate is too high, it may be difficult for local consumers to accept it. "
  Founder chemical team believes that in the short term, domestic head tire enterprises can eliminate the actual impact by sharing tax rates with American dealers and consumers, adjusting the product structure sold to the United States, reducing costs and increasing efficiency. In the long run, internationalization and branding are the ultimate choice for China's tires to break through tariff restrictions. The leading enterprises in the industry are expected to pass the screening again, speed up the global layout, win more market share, and finally grow into an international tire giant.
  It is worth mentioning that the internationalization layout of the leading enterprises in the tire industry is continuously advancing. Linglong tire factory in Serbia is expected to be put into operation in June 2021, when it can be exported to the United States by European factories to avoid trade barriers. Analysts believe that the leading enterprises in the industry can rely on the upgrading of product quality and the global layout of production capacity to consolidate their industry status of "strong and strong" through "double anti" and other events.