The year 2018 is considered the toughest year for the Chinese tire market, global powerhouse tire producing and consumers had to face difficulties. The market had US sanctions and on the other hand the slumping domestic demand.
The market has been facing a lot of problems recently such as tariffs increasing, raw material increasing, and labor costs. In Shandong Province around 35 tire makers were shut down because of bankruptcy from 2017 to august 2018.
As the demand for tires is booming in domestic and also in the international market, more and more factories are being opened to meet the demand in the province of Shandong it is also known as the home of Chinese tire factoring in the Dongying.
The tire is made of many different raw materials but the machinery works on electricity to combine all the materials to make a refined product for the consumer, if there is a shortage of electricity it will affect the production of the tire directly and to outsource the electricity or to use the alternatives will cost the factories more and in results, the price of tires will again go high which is not good for the consumer at all. Electricity is important for every industry but to meet the demands of the tire at the moment factories cannot afford the shortage.
