Tire industry brewing second round of collective price increase
In the face of skyrocketing prices of natural rubber, tire manufacturers have to adopt measures to increase the price of tires to pass the pressure of rising costs, which is the second collective price adjustment of the tire industry during the year. The Ministry of Industry and Information Technology recently sent a research team to tighten the investment threshold for the tire industry. Natural rubber prices double in a year According to statistics, in October 2009, the price of domestic natural rubber was approximately 16,000 yuan/ton. In October 2010, the price of natural rubber has broken through the 30,000 yuan/ton mark. At present, the domestic natural rubber futures price has approached 39,000 yuan/ton, and the price of rubber has doubled within a year, and there is a tendency for it to continue rising. In fact, since September, the price of natural rubber, the main raw material for tires, has continued to skyrocket. On the other hand, the United States, India, the European Union and other countries are conducting anti-dumping investigations on China's construction machinery tires and radial tires, making it difficult to export tires in China. The relevant person of the tire branch of China Rubber Industry Association stated that this caused a substantial increase in the cost of production of rubber products, and the production and operation of enterprises were difficult to sustain. In the first nine months of 2010, the production costs of 43 companies in the Tire Division increased by nearly 30%, and profits have dropped by 20.6%. The efficiency has dropped significantly, and loss-making companies have increased. Statistics from the first 7 months of 2010 of the Tire Branch show that there are 10 loss-making companies in 43 companies with a loss of 23.3% and a loss of 222 million yuan. The three quarterly reports of a number of tire companies released recently show that the profitability of the tire industry has not been optimistic. Industry insiders estimate that in the fourth quarter there may be a loss in the entire industry. The industry believes that the supply issue will not be eased in a short time, and the Fed's latest round of quantitative easing policy will continue to support rubber. It is expected that by the second quarter of 2011, rubber prices may remain at high levels. Tire companies brewing secondary price increases This reporter learned that in the face of natural aggressive rubber prices, domestic tire companies are brewing a second collective price increase , and in the first half of 2010, almost all tire companies have mentioned a price. Cao Kechang, president of platinum tires Asia Pacific, told reporters before this, no one tire company can make raw materials rise all let consumers pay the bill. “We offset a portion of the rising costs by price increases, and some of them are uplifted by our sales volume. The price increase is probably between 4% and 7%.†The reporter learned from the Michelin store that since October, its tire prices have risen quietly. The price adjustment products cover almost all types of tires, and the range is about 5%-10%. Jiatong tire dealers also confirmed that in order to cope with rising costs, the company has already raised the price of some products. According to the tire association's estimate, the average rate of the second round of collective price increases is 8%. According to Zhang Haolin, research director of China Investment Consulting Co., Ltd., due to the excessive increase in the price of natural rubber, even if the price of tires rose by 8% in 2010, it would not keep up with the increase in the price of natural rubber, and the survival environment of domestic tire companies could still not be fundamentally improved. . Therefore, China's tire industry needs to take measures as soon as possible to curb the natural rubber prices continue to rise, to stabilize the market price. Tire companies themselves must also take measures to strengthen cost control, for example, to promote the adjustment of their product structure and industrial upgrading, the use of hedging and other financial means to avoid risks. In fact, due to the ever-increasing prices of natural rubber in the world, tire manufacturers have started to increase the selling price of tires in the first half of the year to ease the pressure of rising costs. The cumulative increase in tire prices in the first half of the year was approximately 6%. MIIT tightens tire investment threshold The “internal and external attack†faced by the tire industry has attracted the attention of the competent authorities. The reporter learned that officials from relevant departments and bureaus of the Ministry of Industry and Information Technology recently went to Qingdao, Yantai, Weihai and other places in Shandong Province to conduct field research on the implementation and implementation of the Tire Industrial Policy. The research group inspected Huanghai Group, Sailing Group, Delicate Group, Triangle Group and Chengshan Group successively and held discussions with the local government, industry and informatization authorities, and tire manufacturing enterprises. The in-depth understanding of the tire industry since the US Faced with new situations and new problems, he listened carefully to grass-roots policy recommendations. According to the “Tire Industry Policy†issued by the Ministry of Industry and Information Technology recently, “Encourage key enterprises with comparative advantages, through mergers and acquisitions, brand sharing, and integration of production and sales, merger and reorganization of difficult enterprises and outdated enterprises, and promote the development of enterprises to collectivization and improve. "Industry concentration", and clearly defined the entry threshold for the tire industry. By the end of 2011, it will no longer build or expand tire projects. At the same time as the entry barriers were set, the Tire Industry Policy also proposed a variety of supporting measures. Tire enterprises participated in natural rubber planting and processing, optimized initial processing of natural rubber, and established overseas natural rubber planting and processing bases would receive policy support. In fact, there have been problems such as disorderly competition and overcapacity in the tire market in China. Cao Kechang also pointed out that "the concentration of the Chinese tire industry is too low." According to his calculations, there are more than 300 Chinese 3C-certified tire factories, and only 2 in the United States, where the automobile industry originated. Drive In Rack,Drive In,Storage Racks Sunli Industry Equipment Co., Ltd. , http://www.dopro-rack.com