"In 2010, the loss of domestic tire companies exceeded 20%. Since 2011, the loss of tire companies has exceeded 50%, and no company can 'hold firm'."

"A few tire companies that have not yet increased their prices will certainly follow up prices immediately."

The price of natural rubber continued to rise at a high level, and Chinese tire companies that had already expanded to 50% of the loss faced a larger price increase.

Recently, the Morning Post reporter learned from the tire branch of the China Rubber Industry Association, since the Spring Festival in 2011, most tire companies have carried out a price increase of 5% to 8%, the highest increase since 2010. It is reported that companies that have not raised their prices are also planning to increase prices in March and April. It is worth noting that the Morning Post reporter also learned that some foreign-funded enterprises are fighting for the market, but they are clamoring for price increases and special prices. The price after the special offer is even lower than before the price increase.

Highest price increase 8% to 10%

At the end of 2010, due to the higher profitability of foreign-branded tire companies, there was no corresponding increase in prices when raw materials rose sharply to capture more market share. This has affected domestic brands that have already raised their prices. Domestically-owned tire companies have also called for tire companies to raise prices collectively.

It is worth noting that, in this round of price increases, foreign brands have almost fully participated. According to data from the tire branch of the China Rubber Industry Association, foreign companies such as Michelin, Bridgestone, Cooper, Hankook, Kumho, Yokohama, Sumitomo and other tire companies have announced that they will increase their prices by 5% in China's tire matching and replacement market after the Spring Festival. ~8%. Domestically-funded companies such as Shuangqian, Triangle, Hangao, Guilun, Fengshen, Linglong, South China and other tire companies raised their domestic tire prices by 5%-8% again, and raised the export price of tires by about 6%.

Zhang Wanyou, deputy general manager of Shuangqin Group Co., Ltd. (600623), told reporters that this was the biggest increase in tire prices since the skyrocketing price of natural rubber in 2010. Some companies raised prices by 8% to 10%.

“In 2010, the loss of tire companies exceeded 20%. Since 2011, the loss of tire companies has exceeded 50%, and no company can “hold it firmly.” A related person in charge of a foreign-funded company stated that there is currently no minority of price increases. Tire companies will certainly follow up prices immediately.

It is understood that some foreign-owned tire companies such as Yokohama and Dunlop, in order to seize the market, not only did not increase prices, but also carried out promotions.

It is worth noting that tire companies are ushering in a new round of reshuffle and fierce competition is underway. It is understood that although foreign companies recently announced a collective price increase, some companies will launch some special products in order to grab the market and complete sales targets, and these special products tend to be higher-volume products. Taking Michelin tires as an example, the special products launched recently have a price of 100-200 yuan/bar, which is lower than the price before the price increase.

“This is a common practice for some tire companies. By next month, they will change their products to make special offers, but the total price of their products will still increase, and through sales of special products, their sales are also guaranteed.” Agents representing several tire brands revealed to reporters.

Some small tire companies stop production

Some companies have achieved success in seizing the market - some small tire companies have stopped production. For these companies, if brand tires do not increase prices, raising prices means losing the market. According to the data from the tire branch of the China Rubber Industry Association, companies that did not take a holiday in the Spring Festival in previous years all had a holiday in the Chinese New Year in order to reduce their output in 2011, and most companies put 3 to 5 days more than in previous years.

“The rise in natural rubber prices has led to a share of more than 50% of tire costs, compared with 42% to 45%. This also means that tires are also subject to a 50% increase in price. Since last year, tire prices have accumulated. The increase is also only 20% to 30%, tire companies are still under pressure." Zhang Wanyou said that tire companies can only through internal digestion, adjust the product structure, such as looking for alternatives to natural rubber, the development of tubeless tires. In addition, we must increase production capacity and increase sales to dilute the cost.

However, letting the tire companies relax slightly, the price of new high natural rubber has recently declined.

Recently, as Japan's natural rubber prices skyrocketed and fell, domestic natural rubber prices also began to fall. The main contract price of natural rubber futures even fell to a low limit on the 8th. The GB spot trading price for natural rubber was around RMB 41,000/ton, and the Shanghai RUF crude rubber futures contract RU1105 closed at RMB 36,370/ton, down 1.88% from the previous day.

"Our tire companies want raw material prices to remain stable." Zhang Wanyou hopes that natural rubber prices will return to rationality.

Let the tire companies feel hope that, from the supply point of view, China's Hainan has ushered in a large amount of supply at the end of March, and by the end of April, the spot supply of plastic-producing areas abroad will become increasingly abundant. This may be able to curb further increases in natural rubber prices.

According to statistics, in October 2009, the spot price of natural rubber was only RMB 16,000/ton, and once in 2011 it reached a high of RMB 43,000/ton. In the meantime, in the fourth quarter of 2010, tire companies jointly proposed that China's rubber industry urges the State Reserve to sell rubber and stabilize raw material costs.

Screw conveyor

Flexible Auger Conveyor,Feeder Screw Conveyor,Auger Feeder

Century New Power International Trade Co., Ltd. , http://www.tjdustcollector.com