The price of natural rubber, which has continued to soar now, has caused a significant increase in tire production costs. It is engulfing the tire industry's profits and the industry has already lost 26%. Last weekend, major tire companies in China once again appealed that the situation of severe distortion of natural rubber prices should arouse the attention of the relevant state departments, and the state should promptly implement policies and market interventions. These tire companies were forced to make a decision, will use the time of the Spring Festival to extend the holiday, reduce the cost of raw materials.
The price of natural rubber soared recently. On January 7, the price of natural rubber was 38,550 yuan per ton, again approaching the record high of 39,800 yuan per ton last November. Some domestic tire manufacturers have suffered losses. Recently, the leaders of seven major tire companies, such as Fengshen Tire, Shuangqin Group, Hangzhou Zhongce Rubber, Guizhou Tire, Triangle Group, Shandong Linglong, Guangzhou International Group and Wanli Tire, etc., proceeded on the current market trend of tires and natural rubber. Full communication and discussion, and reached a consensus: First, natural rubber prices now reach 5,200 US dollars / ton, a high degree of overdraft its own value, the current natural rubber prices no matter what the season or the needs of tire companies have not continued to rise space. Second, since last year, the high price of natural rubber has raised the production cost of tire companies by 50%. Although companies have repeatedly raised tire prices, they still cannot offset the cost increase caused by raw material price increases. From January to November, tires Industry profits fell by 22% year-on-year, and losses reached 26%. In addition, from the perspective of the tire downstream market, the prices of tires for trucks, construction machinery manufacturers, and maintenance markets have clearly been unacceptable. This will severely squeeze the tire market this year. Third, in response to the current soaring price of natural rubber, seven tire companies are planning to use the Spring Festival holiday and plan to suspend production for half a month to reduce the use of high-priced raw materials to produce tires.
Tire enterprises said that the soaring price of natural rubber has seriously deviated from the normal fluctuations in the market, not only causing great damage to the tire industry, but also causing damage to automobiles, construction machinery and related industries. The relevant state agencies should give a high degree of this attention. The company stated that it will actively cooperate with the China Rubber Industry Association to appeal to the country to reduce the import tariff of natural rubber. At the same time, it hopes that the country will expand the supply of national natural rubber as soon as possible, and stabilize the price of natural rubber, so that the Chinese tire industry can develop continuously, healthily and steadily.

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