Why has the price of tires been rising recently?
The price of tires is related to the three major futures (rubber, oil and steel), so the price will be closely related to the changes of futures. Domestic brands such as Shandong Small Factory and some domestic brands purchase rubber on a monthly or quarterly basis, and will not hoard in large quantities, while international brand tires are consortia such as Michelin and Bridgestone, which have the strength to hoard rubber. Last year, due to the financial turmoil, the original 27,000 tons of rubber has been reduced to 1 10,000 tons of rubber, which has created a lot of profit space for domestic brands. The main promotion methods of domestic brands are price competition and sufficient sales resources. At present, the price of rubber futures has risen sharply and resources are scarce. If the price is not raised, enterprises will face the risk of bankruptcy, which is inevitable for those manufacturers. Due to the rise of domestic tire brands, international first-line brands will seize the opportunity to follow the price increase, even international brands.