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Eight tire companies announced price increases, with the highest increase of 10%!
Produced? |? Cars and wheels

Senior editor? |? Gao Xiaoyu

Recently, some netizens announced that two tire companies in the market announced price increases, namely Jianda Rubber and Yuanxing Rubber. Details are as follows:

Jianda Rubber issued a price increase notice: it pointed out that due to the epidemic situation, the cost of employees and other aspects increased, and the supply of carbon black and accelerant was affected by the epidemic situation, and the price rose sharply, resulting in an increase in tire manufacturing costs. Therefore, it is decided to increase the prices of inner and outer tires of bicycles, electric vehicles and motorcycles by 8%-1 0% from April.

Sichuan Yuanxing Rubber announced: Since February this year, due to the influence of COVID-19, the supply of raw materials such as rubber and carbon black in the factory is insufficient, the price has risen, the transportation is inconvenient, and the packaging price has increased. As a result, the cost pressure of enterprises is great, and it is decided to raise the tire price from April 1, with the price increase range of 5%- 10%.

Many tire companies have issued price increase notices.

In fact, many tire companies have issued price increase notices before this. Such as Pirelli, Michelin, Goodyear, Hengfeng Rubber and Wanli Tire.

Hengfeng Tire: Customers who made advance payment and order arrangement before March 17 (inclusive) will still follow the old price list. The new price list was officially implemented after March 18 (inclusive), with an increase of 3 points.

Pirelli: It is planned to raise the price of American car and light truck tires by 5% on April 6th.

Michelin: Starting from March 16, the tire prices of some passenger cars and light trucks of Michelin, BFGoodrich and Uniroyal brands will be increased by 7%, and those of the United States and Canada will be increased by 5%.

Goodyear: On April 1 day, the tire prices of Goodyear and Kelly brand passenger cars were raised by 5%.

Sumitomo Rubber: On March 1 day, the price of some Jin Fei brand tires was raised by 5%.

Wanli Tire: Since February 10, the main supporting specifications of Wanli brand have increased 15 yuan/piece.

What is the reason for the price increase of tires?

2020 is a special year. Due to the epidemic situation in COVID-19, all walks of life have been affected to some extent, and the natural tire industry is no exception. According to Chopin's statistics, eight domestic and foreign tire companies have announced price increases. The main reasons for the price increase of tires are the following aspects:

1, the upstream raw material enterprises are underemployed.

Due to the epidemic situation, all enterprises stopped working during1-February. With the improvement of the epidemic situation, enterprises began to return to work in an orderly manner. However, at the beginning of the resumption of work, due to the restrictions of personnel and transportation, even if the enterprise resumes work, the operating rate is still very low.

Rubber, carbon black, accelerator, etc. As an upstream raw material supplier of tire enterprises, it is a little difficult to ensure the supply of raw materials due to the low operating rate, which directly affects the cost and price of tire enterprises.

2. The traffic is inconvenient

Affected by the epidemic, villages and roads around the country have been closed, making it more difficult for logistics vehicles to get on the road. Previously, some people in the tire industry pointed out that the logistics was unreasonable and the tires could not be shipped.

At this stage, with the opening of high-speed roads and smooth logistics, it will take some time for tires to be delivered immediately.

3. The tire factory is under-started.

With the relief of the epidemic situation, although various tire enterprises started production one after another, due to the implementation of personnel and epidemic prevention and control, the operating rate of enterprises was not high. Some tire companies have just announced that they will start some production links. It may take some time for tire enterprises to fully resume work.

Tire manufacturing is economies of scale, and it can only be profitable if it exceeds a certain operating rate. The lower running rate greatly increases the manufacturing cost of tires.

With the spread of the epidemic, what is the big market environment of the tire industry?

In addition, in addition to the influence of the tire industry's own environment, the global market is extremely unstable at this stage, and all walks of life are in crisis. Judging from the current market environment, COVID-19 epidemic raged all over the world, the price of crude oil fell sharply, and tire enterprises closed down, which enveloped the tire industry.

1, the global situation is grim, and the rubber price has fallen to the lowest point in four years.

The American stock market triggered the fourth fuse in history, and crude oil futures fell by more than 30%. The "oil price war" initiated by Saudi Arabia often caused shocks in the global capital market. As the main raw material of tires, natural rubber has been in a state of decline recently. It is understood that the current price of natural rubber is at the lowest point in four years.

2. The epidemic spread, and foreign tire industry stopped production seriously.

With the recent epidemic raging, the number of confirmed cases in COVID-19 has exceeded 200,000. 35 countries including Italy, Spain, Czech Republic, France and Switzerland have declared a state of emergency, and many employees in the tire industry have been recruited. In order to ensure the safety of employees, Michelin, Bridgestone, Goodyear and other tire companies have announced the temporary closure of their tire factories, and some tire companies have chosen to slow down tire production.

At present, Goodyear has closed 24 tire factories, Bridgestone has closed 15 tire factory, and Michelin has also closed factories in France, Italy and Spain.

Chopin said:

At present, the global COVID-19 epidemic is spreading, and the economic situation is very grim. Crude oil price, rubber price, low operating rate of tire enterprises and sluggish consumer demand have set off a huge storm in the relatively calm tire market.

The problem of tire price is also a problem that all tire people have been worried about. So, in the future, will tire prices go up or down? what do you think? Welcome to vote and leave a message ~ ~ ~

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.