Tyre prices have soared: local firms have raised prices even more, by as much as 40%

February 27 news Throughout February, with rubber and other tire raw materials prices continue to rise, "price increase" has become the main theme of the entire tire industry. In the recent week, many tire companies issued price increases again. In the latest news from the European tire market, Bridgestone has announced that it will introduce price adjustments for all its tire products with an average increase of 8%. Prior to this, Michelin, Goodyear, Pirelli have announced price increases in the European market, between 8% and 9%.
According to the news on February 27, the tide of tire price increases has begun since November last year. First, some small enterprises raised prices, and then Goodyear, Michelin, Pirelli, Zhongce and so on have followed up, especially truck and bus tires. After the Spring Festival, the price increase has spread from truck and bus tires to car tires. In general, the increase of multinational tire brands remained at 8%-10%, and the local tire brands from the end of last year to the present, basically increased between 10%-30%, and some brands rose as high as 40%. At present, most of the frequent price adjustments are small and medium-sized tire enterprises in Shandong, and large tire enterprises tend to stabilize after several price adjustments.
Wanli Tire general manager Lai Yanshan introduced that the company's entire product price has been increased by 10%. A sales management of Zhengxin rubber told reporters that the company had adjusted the price once last year, and the price increase of their entire line of products has reached about 8%-9% in the near future. A Goodyear tire insider said that they will raise prices next month, the range is estimated to be less than 10%. Michelin and Hankook Tire public relations department officials said they have not officially announced the "price increase."
Compared with tire physical stores, only part of the current e-commerce platform has raised prices. But those big e-commerce platforms have not yet joined the queue. In this regard, a tire industry practitioner said that the tire products of the e-commerce platform will also rise, but in order to maintain the competitiveness of the price, the increase will be smaller than the general tire store, and they will digest part of the price pressure.
When talking about the surging tide of price increases, a tire industry insider pointed out that the main reason is still raw materials. There are other reasons besides the soaring prices of raw materials. Among them, natural rubber as the main raw materials for tire production, the proportion of different products is different, and the proportion of truck tires is higher. 2016 El Nino and La Nina this extreme cold and heat phenomenon alternating, resulting in a shortage of natural rubber affected production, its price from the beginning of 2016 more than 9000 yuan/ton, climbed to the end of 2016 20,000 yuan/ton, now the price per ton is still hovering between 18000-19500 yuan. The main materials in the production of tire fabric, carbon black and steel wire, the price has increased significantly. Like curtain fabric, the increase is nearly 50%, and the carbon black increase is also 190%. The various drugs needed in tire raw materials have begun to be affected in the second and third quarters of 2016, mainly because the relationship between supply and demand has changed. Due to the G20 summit last year, the country has begun to deal with the problems caused by high energy consumption and high pollution, from the point of view of environmental protection, improve the domestic chemical manufacturers access threshold and production costs, so that some tire companies in the supply chain of pharmaceutical raw materials has changed.
The tide of price increases, generally in the domestic tire production plant rose the most fierce, the price increase of multinational enterprises is relatively less, the pace is not so fast. In this regard, a tire industry practitioner revealed that this is mainly the two procurement methods are different. Many domestic tire factory procurement departments are in the form of "cash order", which is greatly affected by the immediate market changes in raw material prices. The procurement of multinational tire companies will basically take the futures type, according to a quarterly or half-year purchase cycle, so when the price of raw materials changes, they will be affected by a few months behind.