Analysis of Tire Industry Operations in June Based on Order Data

Order performance of tire enterprises showed notable differentiation in June. Orders at some large enterprises remained basically stable, while foreign trade order intake varied across companies due to diversified export destinations. Additionally, a sharp surge in ocean freight prices affected export order volumes to a certain extent.

Passenger Car Tire (PCR) Orders: Flat Orders Dominate with Weak Overall Trend

Sample Enterprise Order Status:

The largest proportion (41.67%) of PCR sample enterprises reported month - on - month (MoM) flat orders, with both increases and decreases observed.

Export Orders:

45.83% of enterprises maintained flat export orders.

33.34% saw MoM growth.

20.83% experienced MoM declines.

Overall Trend:
PCR orders in May showed clear differentiation. Enterprises with high export exposure to the EU saw order surges due to pre - anti - dumping rush shipments, but insufficient orders from other regions, coupled with slow end - user demand and limited market digestion, kept overall PCR orders weak.

Truck & Bus Tire (TBR) Orders: Slight Uptick with Mixed Export Signals

Sample Enterprise Order Status:

42.00% of TBR sample enterprises reported MoM flat orders, while 38.00% saw increases, indicating a marginal upward trend in June.

Export Orders:

52.00% maintained flat export orders.

30.00% saw MoM growth, with a few reporting declines.

Outlook:
Rising temperatures are expected to revive replacement market demand, boosting domestic orders. With export orders as support, overall TBR orders are anticipated to grow moderately MoM. However, high social inventories and unmet demand growth will limit order expansion.

Inventory Dynamics: PCR Inventories Rise, TBR Shows Improvement

May Inventory Data:

PCR Tires:
Holiday maintenance and increased flexible production cuts led to shipment pressures, causing end - month inventory to rise MoM. Average inventory turnover days: 46.22 days (MoM +0.31, YoY +14.03).

TBR Tires:
Fewer holiday maintenance activities vs. last year, but production control continued. Post - Guangrao Tire Exhibition sales incentives boosted shipments. Average inventory turnover days: 41.96 days (MoM -1.12, YoY -2.32).

June Operational Outlook: Differentiation Persists with Cautious Production Adjustments

PCR Tires:
Order differentiation will continue, with large enterprises staying stable. Weak end - market demand and ample channel inventories will limit transaction growth despite price adjustments. Snow tire export orders support production scheduling, but flexible production cuts will continue to control inventory.

TBR Tires:
Rising temperatures may drive slight demand recovery, allowing modest production increases. However, soaring ocean freight costs, delayed export orders, and constrained demand growth will limit output expansion, with potential production halts capping capacity utilization growth in June.