By April 17, there have been over 2.2 million COVID-19 inflect people in the world. With epidemic worsen overseas, China's tire export is facing the second blow since January.
Overseas orders canceled/postponed
According to SCI prediction, Chinese tyre export may decrease over 30% in the second quarter of 2020, and may continue to the third quarter.
Since the second half of March, many Chinese tire factories have received overseas customers' notices to cancel or postpone their orders.
According to incomplete statistics, Chinese tyre export order reduced 20% to 50% in recent days, some of them cut over 50% of export.
One of large tire producers in Shandong Province told Tireworld that its tire export took over 50% of total tire sales, and with tire export reducing in the past months, the company's inventory was also rising. In that case, the company has to control its production.
Europe and America were two of the worst-hit areas by COVID-19 in the world, and also important tire export destinations for China.
Statistics showed that there were 35.1% of Chinese passenger vehicle-used tires exported to Europe, 12.6% to North Amercia, and 7.9% to South America. Meanwhile, there were 17.6% of Chinese commercial vehicle-used tires exported to North America, 8.9% to Europe and 8.4% to South America.
Chinese tire factories may stop production again in May
After over one month of re-start operation, most of Chinese tire factories has recovered to the same operation ratio compared to the same period of 2019.
With tire export declining, over 70% of tire companies would cut tire production to deal with export decline in the next months or longer time.
An unidentified source told Tireworld that there would be some tire companies stopping production in May in Guangrao Shandong Province.
