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“It is not enough to prepare the cotton coat, but also to grab two matches.†The voice of Cao Chaoyang, chairman of Fengshen Tire Co., Ltd., just fell, and a laugh was heard from a corner of the venue, but the atmosphere immediately became dignified. . Sitting around the scene are all heavyweight figures in the industry. “How to develop steadily and rapidly under the current severe international financial crisis†has become the top issue for the first meeting of the China Rubber Industry Association's seventh session.
“Under the current circumstances, the entire industry, especially large and medium-sized enterprises, has responded positively, insisting on independent innovation and structural adjustment, and solidly advancing the stable and rapid development of the rubber industry. But for the moment, there are still several issues that need to be addressed and resolved. Question.†Gu Hongzhen, honorary president of the China Rubber Industry Association, set a big tone for the overall economic performance of the rubber industry.
Mixed
As the financial turmoil hits, the world is cold. According to Fan Rende, president of the China Rubber Industry Association, since the beginning of this year, the prices of major raw materials such as rubber have soared first, then dropped sharply, the country's economic policy has been adjusted, the exchange rate of the renminbi has changed, and market demand has weakened as the national financial market turmoil has intensified, especially rubber. The sharp decline in product exports has brought severe challenges to the development of the Chinese rubber industry. However, for the January-September statistics that have just been released, it can be described as mixed.
The statistics of the China Rubber Association’s key member companies show that from January to September this year, the total tire production was 188 million, an increase of 9.8% over the same period of last year, which was 2.2 percentage points lower than the increase in the first half of the year, of which domestic-funded enterprises increased by 14.7%. The company’s growth was 4.6%; total production of radial tires was 149 million, an increase of 16.9% year-on-year, of which domestically-funded enterprises increased by 29.8%, and foreign-funded enterprises increased by 6.3%; radialization rate reached 79.3%, an increase of 6.7 percentage points year-on-year; A decrease of 18%; total export delivery increased by 5.9%, which was 4.6 percentage points lower than the increase in exports in the first half of the year; total exports of radial tires increased by 11.1%, which was 3.3 percentage points lower than that in the first half of the year, of which domestic-funded enterprises increased by 23.7%. Increased by 5.7%.
“As far as the overall situation is concerned, the increase in tires has significantly decreased compared with last year, but this is in line with the laws of the market economy. The overall size of the tires is large and the base number is large, so it is not possible to make extraordinary development every year; the main growth point is high-tech radial tire products, in line with domestic and international Market demand; On the basis of the unfavorable factors such as the substantial price increase of raw materials, the company focused on maximizing the economic benefits of the company; the growth rate has steadily declined without major ups and downs; China's brand-name products have increased by more than 18%, which is also commendable in the international market. "Sui Hongzhen said. He also pointed out that other leading products in the rubber industry are mainly new products and marketable products from January to September. In addition to the year-on-year decrease in the output of condoms, the output of conveyor belts, V-belts, and motorcycle tires all achieved year-on-year growth. In particular, it is worth mentioning that the total consumption of raw rubber was 2.959 million tons, an increase of 14.6% year-on-year, which is in line with the growth of leading products.
How cold this winter
What is the impact of uncertainties at home and abroad on the rubber industry? In the words of Sui Hongzhen, "it is still looking at the flowers in the fog."
“The sales growth of automobiles in the first three quarters dropped by 9.0 percentage points year-on-year. Among them, the rare case of double-on-year declines in vehicle sales in both China and the same period last year, which rose in September, but still declined year-on-year. Auto manufacturers have controlled the output in the fourth quarter. Fan Jianping, chief economist and director of the Economic Forecasting Department of the National Information Center, told reporters.
“China’s auto production will exceed 10 million units in 2009, and it is normal for the growth rate to slow down. At the same time, as some consumers are delayed by the impact of the stock market, the characteristics of marketing sprints in the fourth quarter will not be as full as in previous years. "The words of Yi Yiping, executive deputy director of the expert committee of the China Association of Automobile Manufacturers, undoubtedly made the tire manufacturers present feel chilly.
But the difficulty does not stop
"More than 70% of the use of natural rubber depends on imports, but the country has classified it as a restricted import product, and at the same time it has approved many foreign-funded tire companies to build factories in China. Natural rubber imports have to pay a high tariff of 20%, but the export tax rebate rate There has been no callback, and the pressure is too great,†said Ge Guorong, deputy general manager of Hangzhou Zhongce Rubber Co., Ltd.
Some time ago, in order to maintain economic stability, the state introduced a policy of retreating tax rebates for textile and apparel industries. "After the introduction of the callback policy, I rushed through the list from the beginning to the end, but there was no rubber." Huang Guozhong, general manager of Nanjing Jinhu Tyre Co., Ltd. expressed his regret.
From this viewpoint, Yue Chunchen, general manager of Shuangqin Group Co., Ltd., agrees. He said that many people have some misunderstandings about rubber companies. Brand-name companies in the industry should display new technologies in front of the public.
“The state gives preferential treatment to the comprehensive utilization of waste rubber, but it does not include the leading product of reclaimed rubber. The carbon black is listed as a high-energy-consuming industry, and only the total use of coal tar and other raw material oil is limited, rather than limiting unit consumption. The result can only be to restrict companies from becoming bigger and stronger!†said an entrepreneur who did not want to be named.
It is understood that due to the soaring raw materials in the rubber industry from January to August this year, the high cost of many companies has not yet had time to digest, the price has plummeted, and the situation is paralysed. At present, many small factories in the rubber industry are in a state of stagnation or semi-starting. Some foreign-funded enterprises are also forced to “dark drop†their prices. Shenyang, a tire dealer told this reporter that before selling a 2000 yuan truck full steel radial tire, now he can 800 yuan will be "photographed."
"Sometimes, just like selling a cloth in a crosstalk, the price of a tire can be called arbitrarily," someone said.
Where to look for Royal Winter Cotton
So, how does the rubber industry seek cold cure and join hands in this cold winter?
Wang Zhaohua, vice president of Michelin (China) Investment Co., Ltd. believes that in addition to appealing for policy support and resolving issues such as export tax rebates and tariff rates, it is necessary to think more about strengthening technical norms and limiting the construction of duplicated projects.
In recent years, the China Rubber Industry Association has been advocating scientific development, brand strategy and circular economy, precisely to ensure that the rubber industry achieves sustainable development. According to Huang Jianhua, chairman of the Rubber Products Branch of the China Rubber Industry Association, hard work is the best choice for companies. At the same time, companies should establish alliances in various forms to enhance their ability to withstand risks.
“Under the current circumstances, the structure of rubber products needs to be further adjusted and upgraded, vigorously develop safety, energy saving, and environmental protection products; it must accelerate the development of domestic natural rubber and synthetic rubber, reduce the dependence on imports, and strengthen independent innovation and self-discipline in the industry. Accelerate the adjustment of the industrial structure and open up the international market; manufacturers and distributors must cooperate, and upstream and downstream enterprises must also strengthen joint efforts; actively strive for policy support.†Deng Yaxi, Secretary-General of the China Rubber Industry Association, concluded.
“Some time ago, the rubber industry’s technical progress has been rapidly gaining market share. However, there has been an extraordinary phenomenon in development. Cold spells have hit, and those companies that have blindly expanded and newly entered the industry will be the first victims, and will even be eliminated. This year’s 1~9 month Few enterprises have survived, but the situation is not optimistic.†Si Hongzhen also pointed out that if relevant measures can be put in place in the fourth quarter of this year, the domestic and international macroeconomic environment will be stable in the first half of next year, and the development speed of the rubber industry in 2009 may stay at 8%~10%, or slightly higher. "What is certain is that the Chinese rubber industry will undergo new innovations and structural adjustments and a new situation will emerge."
Fortunately, through the unremitting efforts of the China Rubber Industry Association and enterprises, issues concerning the export tax rebate of the rubber industry have aroused the attention of the relevant parties in the country. On November 17, the Ministry of Finance and the State Administration of Taxation issued the “Notice of the Ministry of Finance and the State Administration of Taxation on Raising the VAT Refund Rates for Product Value-Added Products such as Labor-Intensive Products,†and clarified the specific scope of 3,770 items for increasing the tax rebate rate. This includes increasing the tax rebate rate for some rubber products such as tires from 5% to 9%. For the rubber industry, this "send in the snow" is of far-reaching significance.
Hot discussion in the rubber industry "Keeping cold"
The intensive release of all kinds of economic data from the rubber industry has already revealed the winter's frustrations. People speculate about how cold this winter is, and they are preparing for their own winter coats. For local companies, this is more like an arduous battle.