Tyre stocks gain as MoF imposes anti-dumping duty on Chinese TBRs

The Ministry of Finance has imposed anti-dumping duty on truck and bus radials (TBR) from China, which lifted tyre stocks in early trade today. The anti-dumping duty ranges from $245.35 per tonne to $452.3 per tonne, said the notification issued by CBEC (Central Board for Excise & Customs).

Domestic manufacturers had suffered heavy losses due to lower pricing pressure created by cheap imports from China. The Automotive Tyre Manufacturers Association (ATMA), on behalf of domestic manufacturers such as JK Tyre, Apollo Tyres, Ceat had approached DGAD for imposing anti-dumping duty to counter cheaper imports.

With the imposition of anti-dumping duty on Chinese imports of truck and bus radials, domestic players are expected to be major beneficiaries. Also, domestic rubber prices (RSS4) are witnessing downward trend and are currently trading at Rs 134 per kg., down from recent high of Rs.141 per kg in July.

JK Tyre and Apollo Tyres are expected to gain larger share due to anti-dumping duty. Apollo Tyres and JK Tyre collectively account for more than 50% market share in TBR segment as of FY17. JK Tyre gained almost 10 per cent and closed at Rs 157.65 on the BSE, while Apollo Tyres gained 1.41 per cent and closed at Rs 262.25