Tires and automobiles are two industries that consume rubber additives. Among them, tires consume about 70% of the rubber market. The demand for tires and rubber accessories depends on the production and ownership of automobiles. The development of the tire and automobile industries directly determines the demand for rubber additives. According to the data of the two industries in 2017, it is expected that the growth rate of China's demand for rubber additives in 2018 will remain at 3-6%.

Tire demand continues

China's tire industry is developing rapidly and its market share is increasing. Before 1950, the annual output of tires in China was less than 30,000; by 1980, the output of tires had reached 11.46 million; in 2005, China's tire output surpassed the United States and became a major tire producer. Today, my country has become a global tire consumer, as well as a tire producer and exporter.

From 2014 to 2015, the domestic tire production declined due to the "double reverse" incident, and the output began to recover in 2016. From January to November this year, China's rubber tire casing output was 869.555 million, a year-on-year increase of 6.3%. It is estimated that the annual output in 2017 will be close to 900 million, a year-on-year increase of 6.87%.

The production and sales volume of automobiles ranked first in the world for 9 consecutive years

Statistics from the China Association of Automobile Manufacturers show that in 2017, the production and sales of automobiles were 29.015 million and 28.879 million, an increase of 3.2% and 3% year-on-year, respectively, a decrease of 11.3% and 10.6% from the previous year.

Among them, the growth rate of production and sales of passenger vehicles was lower than that of the industry as a whole. Affected by the pull of trucks, the production and sales of commercial vehicles achieved rapid growth. The development momentum of new energy vehicles was strong, and the market share of Chinese brand passenger vehicles was higher than the same period.

In terms of car ownership, the national car ownership increased from less than 50 million in 2006 to 194 million in 2016, with a compound annual growth rate of 14.55%. In the first half of 2017, the number of automobiles in China exceeded 200 million, and there is a broad market for tire and rubber parts replacement.