Since the beginning of this year, tire prices have fluctuated frequently, and prices have risen many times. Entering December, the tire industry once again ushered in a round of price increases, and many tire companies frequently issued price increase letters, and the trend of price increases has continued to January next year.
Enterprises frequently issue price increase letters, and the industry ushers in a wave of price increases
Liang Junfeng is a tire agent in Qingdao, Shandong Province, their business agent sales of more than a dozen tire brands at home and abroad, in recent times, he frequently received price increase letters from tire companies, only in the last month received more than a dozen, some companies even in a month on two consecutive price increases.
Shandong Qingdao tire agent Liang Junfeng: This year's market should have changed the most in the past 10 years, and such frequent price increases as this year are rare, and the amplitude is so large.
Liang Junfeng introduced that this is already the third round of centralized price increases for tire companies in the fourth quarter, and each round of increases is about 3%, taking the semi-steel tires they sell for a car as an example, the price in the first half of this year is still 370 yuan / bar, and now the price has risen to 410 yuan / bar.
It is understood that in the second half of this year, especially since the fourth quarter, tire companies have frequently raised product prices, and the current tire prices have risen by nearly 10% compared with the first half of this year. In the latest price increase letter released by some companies, it can be seen that the price increase trend has continued to January next year.
Raw materials have risen sharply, and it is difficult to offset the cost pressure after multiple price adjustments
Tire prices have been raised in multiple rounds, the most important reason is that the production costs of tire companies have risen sharply, and the reporter also learned in the interview that even if tire companies have carried out multiple rounds of price increases, the magnitude of product price increases is still difficult to offset the pressure of rising costs.
On the production line of a tire company in Qingdao, it is producing semi-steel tires for passenger cars, off-road vehicles, commercial vehicles and other models. Tire production requires the use of rubber, carbon black, steel cord cord, cord fabric and other raw materials, and since this year, almost all raw material prices have risen to varying degrees.
At the same time, factors such as rising coal prices and power curtailment have also made production costs high for enterprises. Although companies frequently raise product prices, it is difficult to fully absorb the pressure brought about by rising costs. It is understood that the overall profit of the tire industry in November fell by more than 30% year-on-year.
Lou Funan, general manager of a tire company in Dongying, Shandong: In the case that production costs cannot be digested through product price increases, the competition in the entire tire market this year is more intense.
Sluggish demand sales have slowed, and inventory in the tire industry is high
On the one hand, in the face of rising production costs, tire companies are under pressure to raise prices. On the other hand, the demand for the tire market this year is not as good as expected, the demand is not strong, sales are slowing down, and the inventory of the tire industry is gradually high after entering the fourth quarter.
In a large tire company in Hangzhou, the person in charge told reporters that their annual tire production capacity is 80 million. Since the beginning of this year, although their overall sales have not changed much from last year, the product sales structure has changed a lot.
Shen Jinrong, chairman of a tire company in Hangzhou, Zhejiang: Some tire products are very full of orders, some varieties of orders fall very quickly, and the orders involved in bulk material transportation fall relatively fast.
It is understood that tires are generally divided into all-steel tires applied to passengers and trucks and semi-steel tires applied to cars. According to the data, the total sales of heavy-duty trucks from January to November were about 1.335 million units, down 11.6% year-on-year, and the sales volume of the heavy-duty truck market has declined for seven consecutive months. Demand for downstream applications has weakened, resulting in lower tire sales. In terms of exports, although the orders of many enterprises have increased this year, the completion of export orders is not high due to the rise in maritime prices and tight capacity.
Entering the fourth quarter of the entire tire industry inventory is high, Zhuo Chuang information statistics, as of November, the inventory days of the all-steel tire industry is about 40 days, up about 14% over the same period last year, and the inventory of semi-steel tires is up about 8% compared with the same period last year.
Comprehensive sources: CCTV News, CCTV Finance, Shenzhen Foreign Trade Circle, Public Information, Network, etc
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