Hyosung 'modestly upbeat' for full year tire cord outlook
29 Sep 2023
South Korean supplier notes ‘ongoing momentum’ for China replacement tire market
Seoul – Hyosung Advanced Materials expects the demand from tire industry to pick up in the second half of 2023, following a weak performance in the first six months of the year.
Revenue for the tire cord segment, which contributes to more than 56% of consolidated sales, fell 6.7% to KRW458 billion (€320 million) during the second quarter of the year on lower average selling prices and volume.
The quarter saw cyclical downturn continue from the second half of 2022 while pricing remained under pressure, said Hyosung in its second quarter report.
The Korean supplier, however, noted an “ongoing momentum” in the Chinese replacement tire market and expects it to continue.
The uptick, said Hyosung, should “lead to an industry-wide turnaround toward the end of 2023”.
Accordingly, the Korean materials supplier said its outlook was “modestly upbeat” throughout the year.
The positive outlook, Hyosung explained, stems from a recovery of new car sales in 2023; higher demand for tire cord in bigger rim size and SUV market and increasing demand in the electric vehicle market.