Natural rubber production reduced Hua'an rubber and other tire enterprises raised prices

In 2021, it is found that not only beef and mutton is expensive, but also the price of going out to change a tire has gone up. A few days ago, Jiangsu Huaan Rubber issued a notice of tire price increase: the factory price will be raised again on January 20, with a range of 2-3%; it will not be ruled out that the factory price will be raised again on February 1.

Hua'an Rubber is not the only case of price increase. Racing wheel tires also issued a notice of price increase on January 15th, saying that the price of the product would be raised by another 2% from February 1. In addition, companies such as Linglong Tire, Zhengxin Tire and Triangle Tire have also announced that they will raise product prices from January 1, 2021, by between 2% and 5%.

According to statistics, in addition to local tire enterprises, Bridgestone, Goodyear, Hantai and other foreign tire enterprises have also raised prices one after another, with cumulative price increases of more than 5%. So what is the reason why these tire companies began to raise prices one after another?

According to industry analysts, the fundamental reason for the rise in tire prices is the rise in raw materials. Among them, the reduction in the production of natural rubber leads to a rise in rubber prices, which is transmitted to tire enterprises, resulting in a rise in the price of the tire industry. It is reported that Southeast Asia is the main producing area of rubber, and more than 95% of China's natural rubber imports come from ten ASEAN countries. Affected by typhoons, rainfall and other extreme weather and diseases and insect pests and other factors, rubber production in Southeast Asia has been reduced, and production is expected to be reduced by 9% in 2020 compared with the same period last year.

In addition, industry insiders believe that the automobile industry will continue the trend of recovery in the next 2-3 years, and as an important supporting industry, tires are affected by the good news of the whole vehicle, which catalyzes its price rise trend.

Editor's comments:

The increase in tire prices will also have an impact on car owners in many ways, because family cars generally change their tires every five years, and if they are online car-hailing or taxi-hailing, or even need to change their tires twice a year, this will invisibly increase people's expenses. In addition, the rise in the price of parts such as tires may also keep the price of new cars high or reduce the discount range. What do you think of the rise in tire prices?