· July tire price has become inevitable

The prices of natural rubber and general synthetic rubber, which are the main raw materials for the production of tires, have shown a slight upward trend. In particular, the price of styrene-butadiene rubber began to rebound after hitting the bottom in January 2015. The average monthly price in June was 10,770 yuan/ton, an increase of 1,364.57 yuan/ton from January, an increase of 14.51%. The price of butadiene rubber rose from 8672.83 yuan/ton in January to 10880 yuan/ton in June, an increase of 25.45%. The increase in natural rubber was slightly smaller at 10.94%. The rising cost has suppressed the profit margin of the tire factory.
At present, the price of not three-pack tires is close to the cost line, and the profit margin is shrinking. However, due to the pressure of sluggish market demand, although the price of raw materials has increased in recent months, the price of tires has not been raised many times. It has been at a low level. Some manufacturers even continue to lower prices or grab the market in the form of promotions. The implementation of the new standard of composite rubber has brought more difficulties to some tire factories.
The raw rubber used in the tire factory is now 95%-99.5%. If the new standard is implemented, the raw rubber content in the compound will drop to 88%. For the rubber processing plants in Southeast Asia, they lack the setting of the mixer. The quality of the composite rubber manufactured according to the new standard is very poor, the difference in raw rubber content is also large, and the carbon black is unevenly dispersed. At present, the rubber processing plants in Southeast Asia basically do not have The ability to produce 88% raw gum content compound glue. If a mixer is added in the rubber processing plant in Southeast Asia, it will undoubtedly increase the production cost and increase the procurement cost of the tire company in disguise, thus weakening the price advantage of the product. For the tire factory, if the new standard compound glue is adopted, the complexity of the processing and use of the tire enterprise is greatly increased due to the drastic reduction of the raw rubber content. The compound formula, process control, etc. of the tire components must be re-tested and adjusted, and the finished tires must be re-tested. Moreover, the tire is a safety component of the car, so it must be certified and reviewed by the car manufacturer. This adjustment takes a long time. The second is to increase the management costs of the factory. In addition, if you continue to purchase the existing 95%-99.5% natural rubber compound, it will be regarded as the original rubber. The import price per ton is 1,500 yuan/ton, and the import volume is 1,500 yuan/1,500 yuan in 2013. For the calculation of tariffs per ton, Chinese tires will also pay a tariff of 2.25 billion yuan for imported rubber, and the production cost of tires will increase substantially.
For domestic tires, this year, due to the rising cost of natural rubber and synthetic rubber, the tire market has been eager to “rise”.
The continuous price cuts in the past two years have caused the loss of profits from manufacturers to sell more, and some manufacturers are unable to make ends meet. However, most of the price-cutting manufacturers are not due to the decline in the cost of real raw materials, and more to avoid losing market share and other manufacturers. Synchronous behavior is mostly a matter of involuntaryness. The new policy of composite rubber belongs to the unified new policy in the industry. The degree of influence and popularity of the industry is relatively high. To a certain extent, it is to leverage the power of the state to sign a reasonable price increase reason for these enterprises, and the production enterprises are looking for such opportunities to turn over. Less, so will not give up using the new baptism in the industry to save the lost profits. Another point is that despite overcapacity and fierce competition in the industry, from the perspective of the bankruptcy of individual manufacturers, the break of the capital chain will prevent all development possibilities, and the current source of funds needs to have a stable and reliable profit to ensure . Therefore, the price increase is still possible, and at most, the growth rate of each manufacturer is different.
"There is no business who is willing to make a loss to buy and sell business". This is the main reason why everyone is worried about the quality after the price has not risen. The new increase in tire production costs will be an established fact. The cost increase is a new problem for any manufacturer. If the manufacturer is really willing to bear the cost increase problem, it is a good thing for the downstream consumer groups, but if it is to reduce If raw material input costs are used to control cost growth, the stability of production quality will be greatly affected. In the past two years, prices have been declining, and the brands of tire quality and weight have declined.
In fact, in this research process, not the cost pressure of raw materials rising and the impact of a small number of manufacturers have risen, the mind is somewhat active, and this year, some of the three-pack tire companies are generally not high in stock, and some of the best-selling patterns are even They are all in short supply, so it is possible to have a certain price increase. For the three-pack tires, although everyone understands that poor market demand is the main reason for the second-level and retail sales, and the price increase is less stimulating to the market, it is even more impossible to solve the problem. However, the price increase of natural rubber and synthetic rubber has caused a certain cost pressure on the production enterprises this year. In addition, the agent is more resentful of the tire price reduction behavior in the past two years. It is also psychologically hoped that the price increase will make the tires detach from the fall. The curse, and the new standard implementation of the compound glue may be a good excuse.

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