U.S. tire price rises affect domestic brands across the board

Recently, major brand tire manufacturers such as Bridgestone, Goodyear, Michelin, and Kumho have announced that they will increase tire prices in the US market by at least 4%. At present, this tide of US tire prices has spread to China and the country. Brand tire prices have entered an all-round rise.

"Daily Economic News" recently found that in Xiaowuji Auto Parts City and Shibalidian Auto Parts City in Beijing, major brand tire dealers have received notifications from manufacturers on tire price increases since last month, and the rate of increase has been increased. In the tens of dollars up to 100 yuan.

Xu Chunhua, vice president of the China Rubber Industry Association, said in an interview with the reporter of the "Daily Economic News" that the rise in rubber prices this year is the main reason for the rise in tire prices.

Domestic tire prices rise

“We received a price notification from the manufacturer last month. This is the first time I have experienced tire prices in more than three years since I first started working in the industry.” A staff member at the Yokohama Tire Store at Shibalidian Auto Parts City told reporters that Yokohama Tire mainly The use of semi-natural and semi-synthetic materials for the Camry and other models is not affected by the increase in raw materials. The high-end tires in the brand have risen by around 50 yuan. "Although the margin is not large, but the price increase is still a significant impact. Sales."

“We mainly provide support for Chery and other models. The price of Jiatong brand tires has ranged from tens of dollars.” Wang, manager of Giti Automotive Store, told reporters, “The recent sales of tires have declined compared to the previous period.”

“We announced the price increase at the beginning of the year, and the average factory price has risen by about 5%, but it has not had a significant impact on the market sales.” Hangzhou Zhongce Rubber Co., Ltd. International Trade Department, which manufactures tires such as Chaoyang and Lucky Manager Hu Linping said in an interview with LANXESS “China Rubber Day”.

When the reporter surveyed Shibalidian Auto Parts City, the price of high-end tires rose less than that of mid- to low-end tires. Du Jianing, head of the Sanjie Qingyuan Goodyear store, said that although Goodyear has already increased its price according to the requirements of manufacturers, Only 10 to 20 yuan, basically can be seen as normal price fluctuations, and did not affect the actual sales.

Michelin, Hui Li, German horse brand, Bridgestone and other brand dealers also reported to the "Daily Economic News" reporter news of tire prices, but as of press time, tire companies such as Michelin and Bridgestone have not yet An official response to the rise in tire prices.

Rising prices or just short-term behavior

“Rising raw materials are the main reason for rising tire prices. Whether it is high-end tires based on synthetic rubber or mid- to low-end tires with natural rubber as the main raw material, they have been affected in varying degrees by high oil prices and reduced natural rubber production. "Hu Linping told reporters that despite the recent decline in the price of rubber, the tire raw materials currently on the market are all purchased before May, and it is reasonable to raise prices."

In the announcement of the price adjustment, the German brand Tire made it clear that the price adjustment was mainly to cope with the cost pressure caused by the price increase of raw materials.

As an upstream supplier of multiple brands of tires, Ko Mao Ting, CEO of the synthetic rubber manufacturer LANXESS Group in Greater China, told the “Daily Economic News” earlier this year that global oil prices are high, and that Thailand and other Southeast Asian regions have caused rubber production due to climatic reasons. The reduction of quantity and the increase in domestic demand for high-end tires, and other factors superimposed directly led to the rise in rubber prices and even tire prices.

Xu Chunhua expects that the prices of tire raw materials this year will increase by 40% from last year, and tire prices will also increase by 20%.

Despite the wide range of tire prices and fierce, but many industry players believe that this round of price increases should not last long, rubber prices should fall back to the level before the price increase.

Tire Industry Competition Changes

The prevailing view was that the current domestic tire market is divided into "three major camps": Michelin, Bridgestone, Goodyear and other companies occupy the first echelon; Kumho, Hantai, Jiatong and other companies are ranked in the second echelon; Chaoyang, good luck and other domestic tires can only rely on low prices to hit the market.

Analysts believe that the Sino-American tire special security case has caused many export-oriented domestic tire companies to turn their energies into domestic markets. After experiencing short-term price increases, the price war will be difficult to avoid as the price of raw materials falls.

Pak Kangpei, vice president of Qingdao Nexans Tire Co., Ltd., said in an interview with the media that although the tire market will grow with the growth of the auto market in the long term, in the fluctuation of raw material prices, the impact of multinational companies and local tire companies With the growing background, the competition among tire companies will become more intense.

Li Fu, assistant general manager of Tianfu Futures, expressed his concern about the increase in automobile costs brought about by the increase in tire prices: “Tire is an important spare part for automobiles. If tire prices continue to rise, it will inevitably lead to higher vehicle costs. Given the increase in auto market sales this year, Lower than last year, price increases may further have a negative impact on the auto market."

Li You also believes that the tire market, like the automotive industry, will usher in an era of elephant dancing. In the future market reshuffle, there will be a number of companies that have been eliminated.