With China accounting for about 34% of global rubber demand in 2011 and with demand for cars slowing last year in the People’ Republic of China, the varied economic climate is proving to be a challenging environment for the country’s fast-growing domestic tire manufacturers.
According to China Daily and Bloomberg reports, China’s economy is forecast to grow 8.5% next year, the lowest amount in the last 11 years, according to the Organization for Economic Cooperation and Development (OECD). Vehicle sales may have risen by the least amount in 13 years in 2011 (final figures are not yet available), plunging from 2010’s record 32%, the China Association of Automobile Manufacturers reported.
“Next year it’s likely that supply will outstrip demand because of a slowdown in the global economy and the subsequent weak demand from the auto and tire sectors,” He Yihua, a trading manager at Okachi told China Daily.
Source: Tire Review
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