It is clear that European anti-truck tyre tariffs are already having marked impact on the shape of the market. This is putting pressure on affected importers and manufacturers alike, but – as we have seen elsewhere in this feature – it could also lead to price increases and product shortages. Here Tyres & Accessories takes a closer look at the issue and what is being done in response based on contributions of industry associations such as the NTDA and ITMA as well as key industry figures.
The EU’s decision to implement import tariffs on Chinese-produced truck tyres marks a sea-change in both the truck tyre market in general and European governments’ approach to the subject in particular. As of the 8 May 2018, truck tyres produced in China and imported into the UK have become between 52.85 euros and 82.17 euros per tyre more expensive than before. And what’s more, with product registration having begun back in February 2018, such charges look likely to be backdated to February on tyres already sold. This cannot fail to have an enormous impact, but what exactly will it mean for the truck tyre sector?
Whether you call them off-the-road, OTR or earthmover tyres, these products are some of the most valuable tyres in the market. And with good reason. Not only are they the physically largest tyre product segment on the planet, these products are often also required to endure the greatest pressures in the most unforgiving circumstances.
Perhaps the most high profile dignitary at Michelin’s “Stoke 2018” event was Clare Perry MP, Minister of State for Climate change and Industrial Strategy. Bearing in mind that retreading and casing inspection/logistics make up such a significant part of what goes on at Michelin’s Campbell Road, Stoke-on-Trent site, and given that over-supply of low-cost truck tyres from China has had a marked effect on this part of the business, Tyres & Accessories was keen to ask Clare Perry what the government can do to help.
Following the US International Trade Commission (ITC)’s decision not to place import tariffs on China truck tyres, Chinese officials have welcomed the news. The ITC determination was made on 22 February 2017 on the basis that tyres from China “did not materially injure or threaten to damage the US industry”, and that no anti-dumping or countervailing duties would be imposed on those products.
In a 3-2 vote, the United States International Trade Commission (ITC) yesterday determined that the US tyre industry hasn’t been materially injured by imports of truck and bus tyres from China, nor is it threatened by these imports. The US Department of Commerce previously determined that these imported tyres are subsidised and are sold in the United States at less than fair value.
China’s Ministry of Finance and Commerce (MOFCOM) has hit back at the US Department of Commerce’s (DOC) decision to preliminarily introduce anti-dumping tariffs of around 20 per cent on Chinese truck tyres exported to the US. Indeed MOFCOM called the ruling, which is in addition to roughly 20 per cent countervailing duties, “an abuse of trade measures” on Friday 2 September. “Chinese tyre companies strongly oppose the US’s abuse of trade measures,” ministry of commerce spokesperson told reports during a briefing in Beijing.
On 20 April 2016 the US Department of Commerce (DOC) revised down OTR tyre import duties
Nine firms were initially covered by the ruling, however DOC found that of these nine exporters, two mandatory respondents, Qingdao Qihang Tyre Co., Ltd. and Xuzhou Xugong Tyres Co., Ltd. made sales of subject merchandise at less than normal value.
New year, new trends It seems a bit pessimistic to start 2016 with a reference to recession. Nevertheless, when Bank of England deputy governor Minouche Shafik suggested the UK tyre industry is in the grip of recession-based consumer behaviour at the end of 2015 she highlighted an important point. The market is encountering different purchasing […]
The 2015 edition of the China International Tire Expo opened on 9 September in Shanghai with around 350 exhibitors – the show’s most ever. The sustained growth represented by these numbers has led to the decision by organiser Reliable International Exhibition Services to transfer CITExpo to the Shanghai World Expo Exhibition and Convention Center (SWEECC), built in the centre of the 2010 Shanghai World Expo site. The show also boasts strong continuity, with around 80 per cent of 2014 exhibitors back in 2015, according to Reliable; in past years the organiser has come to expect a similar proportion of its customers booking their space for the following year during CITExpo.
With more low-cost Asian-produced imports entering key European markets than ever, many within the retreading and wider truck tyre industry are anxious to address what they see as a growing concern. For them there are several problems with the continuing influx of Chinese tyres, but two points are particularly key: the increasing cost difference and increased quality disparities seen in the market. Both undermine the retread market and even its long-term future. As far as retreaders are concerned, the problem is that good quality and environmentally sound retreads are being priced out of the market by cheap first-life truck tyres bought as “disposable” items at virtually cost-price levels. All this raises questions that impact the whole market: How bad is the situation now? How has it got to this stage? What is the impact on new truck tyres and retreads alike? Tyres & Accessories recently met with representatives of the Retread Manufacturers Association (RMA) as well as leading retread and new tyre manufacturers in order to find out more.
Already possessing a convincing claim to being China’s biggest tyre show, the 13th CITExpo on 7-9 September 2015 will be the last at the Shanghai Everbright Convention & Exhibition Centre. Having expanded to include an extra hall in 2014, exhibition organiser, Reliable International Exhibition Services will, in 2016, transfer the show to the modern surroundings of the Shanghai World Expo Exhibition and Convention Center (SWEECC), built in the centre of the 2010 Shanghai World Expo site. The move highlights the strong growth of CITExpo, whose move to a modern, world-class facility caps many years of apparent exhibitor and visitor growth.
On Friday 12 June, the US Department of Commerce (Commerce) gave its final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations relating to the importation of Chinese produced passenger vehicle and light truck tyres. While many analysts and observers had expected the tariff percentages to be reduced – based on previous experience of similar cases – in fact they were increased. In some cases the combined anti-dumping and countervailing duties are north of 188 per cent. While this is at the top end of the range, and notwithstanding one or two exceptions, most tyre companies manufacturer in China or importing Chinese tyres into the US, will now have to pay significantly more than was first thought.
On 4 May the Brazilian authorities passed a resolution calling for anti-dumping tariffs to be levied against Chinese-produced truck tyres with rims between 20 and 22.5 inches in diameter for the next five years.