From 12,000 yuan at the beginning of last year to 22,000 yuan at the end of February this year, the ton price of natural rubber reached the highest point in 10 years - tire companies could not withstand the cost of forced price increases

Affected by various factors, since the second half of last year, rubber prices in international and domestic markets have been rising all the way. Domestic natural rubber rose from 12,000 yuan/ton at the beginning of last year to 22,000 yuan/ton in February this year, an increase of 44% over the same period of last year, reaching a historical high in 10 years. The continued rise in the price of rubber has directly affected downstream tire companies.

There are three reasons why prices have skyrocketed

According to the person in charge of the Tire Branch of the China Rubber Industry Association, this year's rubber prices have risen sharply and have risen sharply, which is rare in history and has a tendency to continue to rise.

There are three main reasons for the analysis of the price of natural rubber. First, Southeast Asia, Thailand, Indonesia, Malaysia, the three major rubber producing countries reached a joint insurance agreement, have reduced their export volume or the implementation of export quota management, limiting or even reducing the supply of rubber. Second, after China's accession to the WTO, the import tariff on rubber was temporarily raised to 12% from 12% previously imposed, which greatly increased the import price of rubber. Third, with the rapid development of China's auto industry, foreign tires and rubber manufacturers have invested and built factories in China in recent years, and domestic companies have also continuously expanded their production capacity, which has greatly increased demand for rubber. At present, the domestic rubber production volume is about 550,000 tons. Last year, 1.4 million tons were imported, and the demand was more than 2 million tons. The large demand gap caused the domestic rubber futures prices to rise.

Raw material increase arch high cost

An industry source told the reporter that from the end of 2002 to the end of February this year, the price of rubber rose by 318.18% over the past three years, and the price of synthetic rubber also remained high. In the production of tires, rubber accounts for about 30% of its cost, and rubber prices have risen sharply, which will inevitably cause cost increases. Raw materials rose by more than 10% of cost in three years, and many tire companies were unable to bear the burden of rising costs.

Tai Qiang (Jiangxi) Tire Co., Ltd. Huang Qiang, chief of material technology department calculated the accounts for the reporter, a 9 kg tire requires 4 kg of pure rubber, according to the current rubber price, only use plastic to increase 12 yuan to 15 The cost of the yuan. The company's current monthly production of 100,000, which means that each month to increase the cost of more than 100 million.

According to the 2005 annual report of Qingdao Huanghai Tyre Co., Ltd., the main business income increased by 16%, while the main operating cost increased by 28%, which was much higher than the increase in revenue.

Double Happiness Tyre Industry Co., Ltd. is a large-scale enterprise with an annual output of 1.8 million sets of nylon bias tires. In 2005, it ranked 65th in the world's top 75 tires. The price of raw materials for natural rubber has soared, and the production has been greatly affected. Shi Bin, deputy director of the company's technical department, told reporters that in order to deal with the impact of natural rubber prices, the company has established more than a dozen cost-focused teams, launched a cost-based, comprehensive potential work. At the same time, it accelerated the development of high-end products and specialized and specialized tires, launched an annual production of 1.8 million all-steel radial tire projects, and the first phase of 600,000 all-steel radial tires project is expected to be completed and put into operation by the end of this year. . However, natural rubber prices are rising every day, making it difficult for companies to maintain production at present.

Forced to raise prices for self-protection

The cost is too high, companies have no way to digest, can only increase prices. According to industry insiders, almost all tire manufacturers increase their ex-factory prices.

According to a retailer operating Michelin and Warrior tires, Michelin tire prices rose by 5% to 10% compared to the same period last year, which is rare in more than a decade. Michelin 215/45R17 tires from last year's 1520 yuan / article rose to 1700 yuan / article, 245/50R18 rose more, last year 2750 yuan / article, now reaches 3,000 yuan / article, the return force 185/60R14 also by 276 yuan / The bar has been increased to 288 yuan/bar. This is still the wholesale price. The retail price is 100 yuan to 300 yuan per article.

Another retailer operating Bridgestone, Goodyear, and Hankook Tire told reporters that compared with the same period last year, Goodyear gained 30%, Bridgestone 3% to 5%, and Hankook rose 5%. about.

An industry insider who asked not to be named stated that although tire companies can adopt price increase methods to cope with the increase in prices of upstream natural rubber, the price increase of the automobile manufacturing industry in the face of a strong downstream industry is limited and cannot fully offset raw materials. The pressure of price increases. A senior executive of a car group also revealed that most tires used by a car manufacturer are provided by a number of companies. Whoever raises prices first will be abandoned. Therefore, only profit margins will be compressed, and small-scale tire companies will face closure. Crisis.

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