Raw material supply tight tires to increase prices

A few days ago, the National Association of Natural Rubber Producing Countries (ANRPC) stated that the supply of natural rubber will remain tight for the next few years.

Japan’s Kyodo News reported yesterday that tire giants Bridgestone and Michelin both stated that they would increase Japan’s truck and bus tire shipment prices by 10% from September.

The report pointed out that the main reason for the price increase of tires is that demand from emerging market countries such as China has expanded, while the prices of fuel and raw materials have remained high. The price range is expected to further expand.

The prices of domestic tires have risen from tens of dollars to the beginning of the previous year. The international tire market has caused a wave of price increases and has spread to China.

Nearly all major tire manufacturers in the world have introduced price increases. The range of price increases covers almost all types of tires, mostly in the range of 5% to 10%.

After increasing the prices of North American truck replacement tires on December 1st last year, on February 1 this year, Michelin increased its North American passenger car and light truck tire prices again.

In mid-December of last year, Bridgestone also raised the price of tires sold in the Chinese market by 4%.

German Continental Tire also announced that since 2011, it has increased the average price of commercial vehicle tires replacing tires in China by 5%.

According to media reports, a survey recently conducted at Xiao Wuji Auto Parts City and Shibalidian Auto Parts City in Beijing found that since last month, major brand tire dealers have received notifications from manufacturers regarding tire price increases one after another. In the tens of dollars up to 100 yuan.

"Almost all brands of tires have risen in price!" said a person in charge of selling tires. Since March this year, the tires of Zhengxin, Hankook, Kumho, Michelin, and Ma Brand have gradually started to increase their prices.

In the morning, the person in charge of the Public Relations Department of Michelin China Co., Ltd. said in an interview with a reporter from the Legal Evening News that earlier this year, domestic Michelin tires had indeed risen in price, and now the company’s products have no plans to adjust prices.

The responsible person further stated that as a tire company, the price increase of raw materials will certainly result in cost pressures, but the company can reduce costs through various means such as the innovation of new technologies, optimization of production processes, and improvement of production efficiency. Immediately passed on to products and consumers.

In the next 7 years, the supply of natural rubber will not keep up with deaf children. On the 21st of this month, the National Association of Natural Rubber Producing Countries stated that due to the increase in the production of natural rubber in several important producing countries, it could not meet the needs of global tire manufacturers, and the global supply of natural rubber was strained. The situation will continue for at least the next 7 years.

Members of the Global Association of Natural Rubber Producing Countries supply 92% of the world's rubber.

In the past year, the limited increase in the supply of natural rubber boosted the price of Tokyo's natural rubber futures by 47%, which also increased the cost of global tire manufacturers.

Data show that the natural rubber production of the members of the National Natural Rubber Producing Countries Association will increase from 9.9 million tons this year to 10.3 million tons next year. In 2015 and 2018, it is expected to increase to 12 million tons and 13.4 million tons, respectively.

However, with increasing demand from tire manufacturers, by 2020, tire consumption will reach 15.4 million tons, while the shortage of natural rubber will expand to more than 1 million tons.

China, the world's largest consumer of natural rubber, will have 3.5 million tons of natural rubber this year, an increase of 6.1% from last year.

The Indian Rubber Industry Association said this week that the shortage of natural rubber in India, the world’s second largest consumer country, will increase with the growth of automobile sales. It is expected that the gap in demand for natural rubber will expand from 175,000 tons this year to 840,000 in 2020. Ton.