Labeling Forms New Challenges for Chinese Tire Exports

From January to November 2015, China's tire export countries, the EU, the United States, the Gulf of seven countries' exports accounted for 53.71% of the total. In particular, after China’s passenger car tires suffered heavy losses from the “double reverse” case in the United States, the number of tires imported into the United States fell sharply, causing Chinese tire companies to turn their attention to the EU, the Middle East, and Africa.

European Union exports the largest market for semi-steel tires

The EU is another important market for tire exports from China in addition to the United States. At present, the EU has a total of 28 member countries, and these 28 member countries all import tires from China.

From the above figure, we can see that before December 2014, the U.S. market was far ahead of the EU market in exports, but from December 2014 to November 2015, U.S. market exports were only slightly higher than in May 2015. EU market. At present, the EU has become China's largest export market for semi-steel tires.

From January to November 2015, China exported 444.79 kt of semi-steel tyres to the EU, which was an increase of 22.61 kt compared to the same period of the previous year, an increase of 5.08%.

Labeling method into the export threshold of most enterprises

However, the road for China's tire exports to the European Union is not always smooth.

From November 1, 2012, the European Union's Green Tire Labeling Act was formally implemented.

Table RRC limits in the first and second phases of the implementation of the EU labelling law

From November 1, 2012, it refuses to certify tires that do not meet the Stage 1 limit (ie, fuel efficiency must be above G); from November 1, 2016, tires that do not meet the Stage 2 limit are also The certification will be rejected (ie the fuel efficiency must be above class E).

From November 1, 2014, the European Union banned the sale of C1 and C2 tires that do not meet the Stage 1 limit, and banned C3 tires from 2016 onwards. From November 1, 2018, it bans the sale of C1 and C2 tires that do not meet the Stage 2 limit, and C3 tires will start from 2020.

The EU has officially implemented tire label regulations. According to surveys, the rolling resistance of Chinese car tyres is mostly Class F and Class G. Most of them can meet the minimum requirements of the first phase of the EU, but a considerable proportion of them fail to meet the minimum requirements of the second phase of the EU.

With the advent of 2016, the European Union will refuse to qualify for tires that fail to reach the second phase of the label and will ban sales from November 2018. In other words, after 2016, the EU market in which Chinese passenger tires are exported depends on new challenges.

The Middle East market has changed again

In addition, the Middle East as an important area of ​​Chinese tire exports, especially after the United States tire special security case, Chinese tire companies have begun to move to the Middle East.

However, the development of the Middle East market was not smooth, especially on October 22, 2015. GSO (Gulf Standards Organization) issued a notice to announce that starting from January 1, 2016, all seven countries in the Gulf began to implement the tire labeling method ( From November 1, 2015, Saudi Arabia has implemented the tire labeling system alone). In the future, the re-export of Chinese tires to these regions may be even more difficult.

For tire manufacturers, the trade barriers such as the US “double reverse” investigation and the technical barriers to the tire labeling method have a great impact on the export of tires.

A large number of tires can't be sold out, and enterprises have reduced production and layoffs. Tire companies that rely on the export market for a long time are even facing the risk of closing down. It is easy to transfer trade directions, and huge export vacancies can no longer be filled in half a year!

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