China's tire industry is currently facing internal and diplomatic difficulties

Recently, the reporter learned that at present, Chinese tire companies are facing embarrassment of internal and external difficulties.

It is understood that since September of this year, the price of natural rubber, the main raw material for tires, has continued to skyrocket and has now surpassed the 30,000 yuan mark, and is continuing to create historical highs. On the other hand, the United States, India, the European Union and other countries are conducting anti-dumping investigations on China's construction machinery tires and radial tires, making it difficult to export tires in China.

Statistics from related departments show that the price of rubber has doubled in one year: the spot price was 16,000 yuan/ton in October last year, and the price of the first-grade goods on November 11 this year has reached 35,400 yuan/ton. The rise in the price of rubber still has no meaning to stop, resulting in a substantial increase in the cost of production of rubber product companies and the unsustainable production and operation of enterprises. A related person in the China Rubber Industry Association Tire Branch said that in the first nine months of the year, the production costs of 43 companies in the tires branch rose by nearly 30%, and profits have dropped by 20.6%. The efficiency has dropped significantly, and loss-making companies have increased. The statistical report from the China Rubber Industry Association’s tire branch for the first 7 months of this year shows that there are 10 loss-making companies in 43 companies with a loss of 23.3% and a loss of 222 million yuan. The three quarterly reports of a number of tire companies released recently show that the profitability of the tire industry has not been optimistic. Industry insiders estimate that in the fourth quarter there may be a loss in the entire industry.

Experts said that rubber prices are one of the most sensitive aspects of tire manufacturing companies and directly determine the profitability of companies. In this situation, the tire industry is brewing a new round of price increases to make up for corporate profits. According to a survey of dealers in Shanghai, Zhengzhou, and Jiangsu, the price of tires in the 4S store has risen quietly since October. According to the relevant person of the China Rubber Industry Association Tire Branch, the increase in tire companies may reach around 8%. Even so, the overall operating status of the tire industry is difficult to improve in the short term.