Since the beginning of this year, the tire market has frequently raised prices. Among them, the first collective price hike occurred during the inertial “replacement tire†period after the Spring Festival; the second price hike occurred in July; and recently, the market has reported that the price of tires will rise again in September, tires The third collective price increase will be experienced. Chang Yingzhi, a researcher in the chemical industry of China Investment Advisors, believes that the increase in tire prices is mainly caused by the dramatic increase in the cost of tire companies. Chang Zhizhi pointed out that at present, the prices of raw materials in the upstream of tires are continuously rising, and the labor costs are also rising. Moreover, due to the impact of RMB exchange reforms, the pressure of RMB appreciation has gradually increased, coupled with factors such as lowering the export tax rebate rate of tires. As a result, the cost of tire companies has greatly increased. Tire companies will naturally consider raising tire prices in order to offset the pressure brought by high costs. Chang Yuzhi further pointed out that among the many factors that affect the rise in tire prices, the increase in upstream raw material prices is the main factor. According to the data, rubber accounts for about half of the total cost of the tire in the main cost structure of the tire. It can be seen that the changes in rubber prices have a greater impact on the cost of tires. This year, the prices of raw materials for tires have soared. Among them, as one of the main raw materials for the production of tires, rubber prices have soared since the fourth quarter of last year. At present, the price of natural rubber has risen to about 25,900 yuan/ton, which represents an increase of more than 100% year-on-year, which directly boosts the cost of tire manufacturers. Tire companies have to raise the price of tires in order to offset the pressure brought by high costs. Chang Zhizhi believes that at present, although tire companies increase the selling price of tires, due to the fierce competition in the tire industry, and the new production capacity of the industry is continuously being released, coupled with the current export situation of tires is not optimistic, Tire prices are limited, and it is expected that the profitability of tire companies this year will be lower than last year. Zhang Yulin, research director of China Investment Consulting Co., Ltd., also believes that the current development environment for tire companies in China is complex and affects the profitability of the company.
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