On October 15, Zhongce Rubber issued a price increase notice, saying that the prices of main raw materials for tires have continued to rise sharply recently, and the manufacturing cost of products has been rising. In order to continue to provide high-quality products and services to the domestic truck and bus tire market, the company has decided to increase the opening price of all steel TBR products by 3% from October 25, 2024.
Zhongce also said that the adjustment is much lower than the cost increase, and raw materials have been in short supply, and the follow-up according to the rising trend of raw material prices and tire market changes, do not rule out the possibility of further price adjustments.
Just yesterday, Zhongce Rubber issued two price increase letters, deciding to increase the price of the company's bias tires and off-road tires by 3% from October 25, 2024; The price of some products and various promotional policies for passenger car tires will be adjusted, and it is expected to increase by 2~3%.
According to incomplete statistics, more than 60 companies in the industry have announced price increases. As the vane of the industry's price increase, Sailun Tire, Linglong Tire, Zhengxin Tire, Guizhou Tire, Shuangqian Tire, etc., are all big names with a leading position in the industry.
The biggest reason for this round of price increases is the rising price of natural rubber. As of October 15, before the press release, the main price of rubber was 18,395 yuan, although it fell from the high level of 19,000 yuan, but it was still at a new high in seven years.
According to Longzhong information data, the raw material cost index of all-steel tires this week was 13496.41, a year-on-year increase of +11.72%, which shows that compared with last year, the tire manufacturing cost has increased greatly.
In terms of operating rate, as of the week of October 4 to October 10, the capacity utilization rate of China's semi-steel tire sample enterprises was 78.77%, +1.79 percentage points month-on-month and +0.83 percentage points year-on-year; The capacity utilization rate of China's all-steel tire sample enterprises was 42.31%, +0.55 percentage points month-on-week and -22.04 percentage points year-on-year.
At present, the equipment of semi-steel tire enterprises is running smoothly, and the equipment scheduling of individual National Day holiday maintenance enterprises has returned to the conventional level; Although many enterprises resumed work and production as planned after the holiday, the device production schedule was in a state of gradual recovery, and the overall capacity utilization rate was limited.
In terms of the market, the current price increase policy of some enterprises has been implemented, the willingness of agents to continue to replenish has weakened, and the downward transfer of the price increase policy has been blocked.