Tire or continue to "price surge"

Compared with the same period of 2010, the price of natural rubber has nearly doubled, while the use of automobile tires as raw materials has only increased by about 20%. In this regard, industry insiders said that this is related to the overall overcapacity in the domestic automobile tire industry. However, as the price of natural rubber continues to increase, more and more tire companies have restricted production, production and production, and will reduce their supply. Tire prices; In addition, the sales volume of Chinese automobiles has soared in the past two years, and gradually increasing the demand for tires for daily necessities will also push up prices.

Natural rubber prices "go up crazy"

It is understood that in China's natural rubber consumption, the proportion of tires accounted for 70%. In the past year or so, for the increase in the price of natural rubber, Zheng Yongxiang, vice chairman of the Shandong Rubber Industry Association, used the phrase “going up crazy” to describe it.

According to reports, in November 2009, the price of natural rubber was only around RMB 16,000/ton, and since then it has entered an uptrend channel and is now almost equal to RMB 39,000/ton.

Some analysts believe that natural rubber prices may maintain a long-term bull market, due to: natural disasters caused by the production of rubber production areas; export countries set limits on exports; natural rubber alternative synthetic rubber is a downstream product of crude oil, crude oil will support strong natural rubber price. Zheng Yongxiang even predicted that it would not be impossible for natural rubber prices to exceed 50,000 yuan/ton in 2011.

Tire rose 20% of Lu's enterprises to limit production

Unlike the skyrocketing price of natural rubber, the rise in the price of tires made of these raw materials has been difficult. Jiatong Tire dealer Jinan told reporters that in 2010, tire prices have been raised several times, but each time is not a big increase, but also about 20%.

Zheng Yongxiang said that this is related to the overall overcapacity in China's tire industry, many small companies, few well-known companies, and companies with less price discourse. "The current situation is, whoever first raises the price sharply will be eliminated first."

Of course, tire companies also have their own way to deal with it, that is, to limit production and production. According to Zhang Hongmin, chairman of the Shandong Rubber Industry Association, the price of rubber is too high, companies can't digest it internally, and more losses are produced. As a result, some Shandong companies are preparing to significantly extend the Spring Festival vacation time, stop production for equipment overhaul, and some companies Although no production was stopped, the production restriction was more serious.

Rising car ownership or will drive up tire prices

On the one hand, tire production is limited, but on the other hand, there is a sharp increase in potential consumption. Zheng Yongxiang stated that in 2009 and 2010, there was a “blowout” growth in China’s auto market, which increased the number of cars in China. These cars will become tire consumers in two to three years. “Some analysts said that in 2011, China’s auto consumption will continue to grow.” Zheng Yongxiang said that in the future, the main customers of tire manufacturing companies will gradually become ordinary car owners, and tires will also become people’s daily consumer goods. The start of the block market will increase the price of tires.

In addition, analysts believe that the global auto market recovery will also help boost tire prices. It is understood that, recently, Continental tires, US Titans, Japan's Yokohama tires and other internationally renowned tire companies are also increasing tire prices.

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