On March 25, the fourth expanded meeting of the ninth council (and the standing council) of the China Rubber Industry Association was held in Guangzhou. According to the preliminary report on the rubber industry’s economic performance for 2018 released at the meeting, despite a complex and volatile domestic and international environment, the sector maintained steady growth, albeit at a subdued pace.

I. The industry’s economic performance exhibited a pattern of steady growth with gradual deceleration and moderate declines, with growth rates peaking in the first half and moderating in the second. Throughout the year, the sector experienced a volatile downward trend, and the overall growth rate narrowed significantly compared to the previous year.

In 2018, according to association statistics, the total industrial output value increased by 6.11% year on year (the same below), a deceleration of 5.12 percentage points compared with the previous year; sales revenue rose by 5.72%, down 9.27 percentage points from the prior year; and the value of exports delivered grew by 7.37%, a decline of 10.96 percentage points versus the previous year.

Among these sectors, some experienced significant declines: the tire industry’s sales revenue grew by 1.22 percent, a decrease of 12.03 percentage points compared with the previous year; rubber products’ sales revenue increased by 1.14 percent, down 10.15 percentage points from the prior year. In the rubber footwear sector, output value, production volume, sales revenue, and exports all posted negative growth across the board.

II. While the output of major products increased year over year, the number of products experiencing declines has risen, and nationwide tire production has posted negative growth for the first time in 20 years.

According to statistics and estimates by the China Rubber Industry Association, in 2018, the nation’s total automobile tire output amounted to approximately 648 million units, down 0.76 percent. Of these, radial tires totaled 609 million units, a decrease of 0.65 percent, while bias-ply tires reached 39 million units, down 2.56 percent. The radialization rate stood at 94 percent.

In terms of radial tire production, all-steel tires totaled 133 million units, up 1.53 percent, while semi‑steel tires reached 476 million units, down 1.24 percent.

III. Economic performance has improved, but disparities among industries and enterprises remain pronounced.

In 2018, according to association statistics, enterprises recorded a 7.88% increase in profits and taxes, an 11.71% rise in profits, and a sales‑revenue profit margin of 5.41%, up 0.27 percentage points. However, development across sectors remains uneven: the rubber hose and tape, rubber products, rubber additives, and carbon black industries have achieved sales‑revenue profit margins that are at or near the national manufacturing average, whereas sectors such as tires and bicycle tires fall short of 50%.

There is significant divergence among enterprises; across industries, profits are concentrated in leading firms, with the strong becoming even stronger. According to association statistics, the number of loss-making companies has risen by 7.5%, while the total amount of losses has increased by 31.49%.

IV. Exports remained broadly stable, with the growth rate narrowing significantly compared to the previous year.

In 2018, the export delivery value of member enterprises increased by 7.37 percent, a decrease of 10.96 percentage points compared with the previous year. For tires, the export delivery value rose by 5.03 percent, and the export delivery volume grew by 4.03 percent—both representing reductions of 12.36 and 5.36 percentage points, respectively, from the prior year’s growth rates. Meanwhile, the carbon black and additive industries posted higher export growth than in the previous year.

In 2018, the nation’s tire export volume increased by 2.16%, a decline of 0.53 percentage points; export value rose by 6.8%, down 3 percentage points. Specifically, exports of semi‑steel tires to the United States fell by 17.6% in volume and 14.9% in value, while exports of all‑steel tires to the European Union decreased by 48% in volume and 44% in value.