External reasons: tire investment support weakened, orders suspended or cancelled.

China's tire meridian rate is over 89 percent, far below the world average. Past investment in tires has been driven by demand for both tires and radial tires, which can only be supported by demand for tires. The tyre industry is hardly booming again. In the past, equipment orders have promoted the rapid development of the rubber machinery industry. It is difficult for traditional rubber machinery orders to survive, let alone develop.

After years of rapid development of China's tire industry, product structure surplus is very serious, the industry has entered the era of meager profit. Chinese tire companies have stopped or reduced investment in tires, putting rubber machinery orders on a cliff. After July, the new order of rubber machinery in China is very limited, which is 20% lower than normal. To make matters worse, orders were suspended or cancelled in the first half of the year, and oak was organising for delayed deliveries, leaving acorn enterprises with money stuck in the backlog of products.

Many of the industry's factories have ready-made products for sale, and some have failed to raise money. Now that the price of rubber is low, the price of tires is still at the bottom. Over the same period, tire inventories rose 30 percent to a record high. In this case, the enthusiasm of tire investment is decreasing, and the order quantity of rubber machinery is reduced to the natural state. The tyre plant itself is difficult to operate, and the return of the rubber industry will be more difficult.

Internal reason: enter the buyer's market obviously, fight in interior, often fight price war.

After years of rapid development, especially in recent years, the capacity of rapid expansion, rubber machinery products serious excess, but the demand for high-end rubber machinery still gap. Due to the good order situation of rubber machinery, the capacity of rubber machinery increased rapidly and entered the obvious buyer's market. Take the tire curing machine as an example. Under normal circumstances, the annual tire curing machine demand in China is about 2,500, but the annual capacity in China is over 4000. The serious overabundance of products leads to lots of competition and fierce competition.

By contrast, China has fewer high-end products for rubber machinery, very limited procurement by multinational tire giants, and less than 15 percent of exports, and China is highly dependent on the Chinese market for rubber machinery. Rubber machinery companies can only be killed in the limited Chinese market. Price war is a common means of market competition. Once China's tire investment is reduced, China's rubber machinery must be deficient, and the price continues to explore the bottom of the probability event.