Cinda Securities: The demand for tire imports in the United States is stable, with a decline in raw material prices and shipping costs in July

According to the Zhitong Finance APP, Xinda Securities released a research report stating that sales at U.S. auto parts and tire stores remain at historically high levels for the same period, with gasoline and diesel consumption relatively stable. Overall, downstream demand for tires is quite stable. The import volume of semi-steel and full-steel tires is at historically high levels, and overall demand remains robust. In July, the tire raw material price index continued to decline month-on-month and year-on-year, while shipping costs fluctuated downwards.

Key Points from Xinda Securities:

U.S. Market Demand

In June, retail sales at U.S. auto parts and tire stores reached USD 11.693 billion, a year-on-year increase of 2.90%. In July, U.S. gasoline consumption was 8.9418 million barrels per day, a year-on-year decrease of 3.04%; diesel consumption was 3.5098 million barrels per day, a year-on-year decrease of 4.09%; U.S. auto sales were 1.3722 million units, a year-on-year increase of 7.43%. The firm believes that sales at U.S. auto parts and tire stores remain at historically high levels for the same period, with gasoline and diesel consumption relatively stable, and overall downstream demand for tires is quite stable.

U.S. Import Demand

In June, the number of semi-steel tires imported into the U.S. was 16.8895 million units, a month-on-month decrease of 4.67% and a year-on-year increase of 7.75%; the number of full-steel tires imported was 1.9116 million units, a month-on-month decrease of 0.39% and a year-on-year increase of 44.90%. In June, the import volume of semi-steel and full-steel tires in the U.S. was at historically high levels, and overall demand remains robust.

July Tire Raw Material Price Index Continues to Decline Month-on-Month and Year-on-Year

In July, the tire raw material price index was 151.90, a month-on-month decrease of 0.28% and a year-on-year decrease of 10.26%. Among them, the average price of natural rubber was 14,003 yuan/ton, a month-on-month decrease of 1.06% and a year-on-year increase of 1.00%; the average price of styrene-butadiene rubber was 12,098 yuan/ton, a month-on-month increase of 0.77% and a year-on-year decrease of 21.53%; the average price of carbon black was 6,709 yuan/ton, a month-on-month decrease of 3.13% and a year-on-year decrease of 19.47%.

July Shipping Costs Fluctuate Downwards

In July, the average Baltic Sea global container freight index (FBX) was 2,531.25 points, a month-on-month decrease of 25.46% and a year-on-year decrease of 50.19%; the CCFI (East Coast route) averaged 1,247.30 points, a month-on-month decrease of 7.31% and a year-on-year decrease of 30.43%; the CCFI (West Coast route) averaged 983.60 points, a month-on-month decrease of 14.44% and a year-on-year decrease of 40.68%.

Sailun's Liquid Gold Tires Launch in the Vietnamese Market

Recently, Sailun Group successfully held a launch event for its Liquid Gold Tires in Nha Trang, Vietnam, announcing that this globally innovative high-performance tire product has officially entered the Vietnamese market. Sailun Group's Asia Regional General Manager Cao Guoqiang and Sailun (Vietnam) Tire Trading Co., Ltd. General Manager Fan Yingyong attended the event and delivered speeches.

Risk Factors: Risk of declining demand; risk of rising raw material costs or falling product prices; risk of economic expansion policies falling short of expectations; risk of escalating international trade frictions