Source: Tire Business, March 21, 2024
Rapid Recovery in the Transportation Industry
On March 15, 2024, the State Post Bureau released the China Express Development Index Report for January-February 2024. According to the report, the index for January-February 2024 is 329.6, a year-on-year increase of 26.7%.
The increased demand for transportation naturally drove a surge in tire sales. This upward trend in replacement is also very continuous, as heavy truck sales have also recovered in 2024!
Continuous Rise in Heavy Truck Sales
Although the Spring Festival in February affected the increase in truck sales, the heavy truck market has shown significant warming when adding January’s heavy truck data. In the first two months of 2024, the cumulative sales volume of the heavy truck market increased by 24.64% compared to the same period last year. The growth in heavy truck sales also implies an increase in confidence in the freight market. The demand for replacements has significantly increased.
TBR Price Increase Goes Crazy
Taking advantage of the increase in order volume and the dual reasons of rising raw material prices and freight rates, Chinese tire companies began to focus on announcing TBR price increases this week. On March 18, 2024, the market welcomed at least 10 price increase notices.
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