Recently, the domestic tire market has seen a resurgence of price increases. On May 25, 2021, Shandong Yinbao Tire suddenly issued a price increase notice: Starting on May 28, prices of mine tires, engineered tires, and military tires have increased by 3%-8%. On May 27, 2021, Xiamen Zhengxin Haiyan Tire issued a notice stating that the price of TBR products will be adjusted. Starting from June 1, 2021, the price of LTS products will increase by 2%, and the prices of other products will increase by 2%. At the same time, it said that the price of TBR products will be increased at any time depending on the rising cost. The price increase is a bit sudden, let's see what the company says? Yinbao Tire said that due to the increase in raw material costs, the company's operations are extremely difficult, and Zhengxin Tire also said that rising costs have to increase prices. Earlier, I said that tire price increases this year will be universal and global. Tire prices in the United States, Europe, South Korea, Japan, and India are all rising. Especially in the North American market now, tire prices are going crazy! Recently, Bridgestone America once again announced that from July 1st, the price of passenger car tires sold in the United States and Canada will increase by 8%, involving the three brands of Bridgestone, Firestone and Fuzion. At the same time, on this day, the prices of some truck and bus tires under the Bridgestone brand and Benda retreadable tires will be increased. In addition to Bridgestone, Michelin, Goodyear, Pirelli, Yokohama, Tongyiou, Hankook, etc., they have all increased their prices in North America. Of course, the unlucky people of the beautiful country will eventually be the people of the beautiful country who will have to pay for the rising costs of the global tire industry. The book is back to the real story, and we are back to our domestic tire market. Although the sound of rubber was not so loud in May, the news continued. Guizhou Tire, Ningxia Shenzhou, Magis, and Yinbao Tire established the main force for price increases in May, and Zhengxin took over in June. Followers will arrive later. That said, stocks should be prepared as soon as possible. Now that companies are clamoring about rising costs, let’s look at what has gone up and what has gone up? The price of natural rubber is still at a high level. There are many signs that the possibility of price reduction is unlikely.
Sri Trang Agro Industry PCL, the world's largest rubber producer headquartered in Thailand, predicts that rubber demand will increase by 5% to 7% in 2021, while supply growth will be flat to 2%. The recovery of car sales and tourism has led to an increase in the consumption of car tires
In addition to demand growth, the pandemic has led to a shortage of rubber tappers and fungal diseases that have invaded trees in rubber-producing countries such as Indonesia. Production will continue to be reduced this year; concerns about rubber shortages in Europe and the United States mainly come from logistics issues such as shortages of shipping and containers. China is the world's largest In the rubber consuming countries, there is no sign of rubber shortage.
To put it bluntly, natural rubber may be in short supply, prices remain firm, and price reductions are unlikely.
In addition, according to reports from Vietnam, the price of latex on the market on May 25th increased by approximately 12% from the previous month. According to statistics from the General Administration of Customs of Vietnam, in the first quarter of 2021, Vietnam's rubber exports reached 674 million U.S. dollars, a year-on-year increase of 103%. The average export price of rubber in the first quarter also rose by 14% year-on-year, reaching US$1,660 per ton.
In addition, according to reports from Vietnam, the price of latex on the market on May 25th increased by approximately 12% from the previous month. According to statistics from the General Administration of Customs of Vietnam, in the first quarter of 2021, Vietnam's rubber exports reached 674 million U.S. dollars, a year-on-year increase of 103%. The average export price of rubber in the first quarter also rose by 14% year-on-year, reaching US$1,660 per ton.
The price of steel has doubled, and chemical raw materials, fibers, and nylon are all rising. These are tangible real gold and silver. The final result of the conversion to tires is the price increase.
