Global Views on the Tire Market, 2010-1011

In the Asian tire market, the overall situation is boostedplans to improve the production capacity of passenger
powerfully by Chinese and Indian markets thoughlight truck tires in its Kheda plant to 15,000/day with the
Japanese tire market showed a downturn trend at theinvestment of USD 56.30 million. Pirelli has declared to
end of 2008.invest another USD 100 million in Brazil and Latin
 America for the production of OTR (off-the-road) tires
In 2009, the auto sales volumes in Europe and USAand agricultural tires. Toyo Tire & Rubber Co., Ltd
declined compared with that in 2008. Nevertheless,has also announced that it will set up a new tire plant in
with the growth of auto reserving volumes, theSoutheast Asia. Cooper will add USD 10 million to
demand for replacement tires drives the growth of theimprove the automatic production level of its tire plants;
whole tire market.meanwhile it declares to improve the production
 capacity of its plant in Texarkana and expand the
Under this background, tire manufacturers even beginproduction facilities in Arkansas and Mississippi of USA,
to raise the price. The price has been increased firstlyGuadalajara of Mexico and the joint venture in
in Goodyear by 6% since December 1st, 2009.Kunshan, China.   
Subsequently, Bridgestone Americas, Continental North 
America and Yokohama Rubber increased their tireIn terms of tire trade in the world, China has become
prices successively. Since January 1st, 2010,the world largest tire export country since 2004.
Bridgestone has raised the tire price by 5%. The priceHowever, in recent years, Chinese tires have sustained
growth rate is about 5% for tires of Continental Northanti-dumping investigations by USA, Venezuela,
America and 6% for all tires of Yokohama Rubber.Australia, Brazil, Peru, Egypt, Argentina, Turkey, South
Tire giants such as Kumho, Pirelli and Michelin alsoAfrica, Mexico and India, etc. Because of the complete
follow up.tire industry chain, huge tire demand, advantages in
 energy and labor resources in China, transnational tire
In India, there is huge demand in the tire market, whileenterprises increase their investment in China
the storage of tire manufacturers has decreased tosuccessively. It is forecast that the global status of
the level equivalent to the total production of 20-25Chinese tire industry will be further raised and China will
days. Hence, the tire price in Indian market was raisedremain the global No.1 by tire export volume in the
by over 5% at the beginning of 2010. All tire companiescoming years.
owe the price increase to the unbearable price growth 
of raw materials. In November 2009, the heavy rainThrough this report, readers can acquire more
and flood severely affected the rubber production ininformation:
Thailand, Indonesia, Malaysia and India. Consequently,-Overview of global tire market
rubber production from these major rubber producers-Supply and demand of Asia-Pacific tire market
suffers considerable decline. The vigorous demand-Supply and demand of North American tire market
boosts the price of rubber.-Supply and demand of European tire market
 -Supply and demand of Latin American tire market
USA's special tariff on Chinese passenger/light truck-Supply and demand of African and Middle Eastern tire
tires (tire special safeguard case) acts as anothermarkets
factor driving the price growth of tires. It affects-Major tire manufacturers in the world
China's tire export to USA and creates the opportunity-Influence of the financial crisis on global tire market
for world tire manufacturers to raise the price.  -Status quo of global tire trade
 -Export of major tire export countries in the world
Tire price increase arouses a new round of tire-Import of major tire import countries in the world
investment craze in the world. After the outbreak of-Major barriers to global tire trade
the financial crisis, tire giants (Michelin, etc.) almost 
stopped all the production expansion plans. At theFollowing persons are recommended to buy this
beginning of 2010, they resumed the productionreport:
expansion and construction of new projects. Michelin- Tire manufacturers
plans to invest USD 870 million to establish a heavy- Auto manufacturers
duty tire plant in South India in the coming 2-3 years- Upstream rubber and carbon black, etc.
and put the plant into production in 2012. Bridgestone