Of natural rubber rose tire industry downturns,

China Suppliers


With the rising price of natural rubber last year, tire industry is no longer a high degree of prosperity. Decline in gross margin when the tire industry is facing pressure to raise prices, and may raise prices in February.


Early last year, natural rubber prices at 1 yuan / ton, while the main futures of natural rubber in Shanghai yesterday to close at 25.3 thousand yuan / ton. Last year, most of the time, natural rubber prices remain at 1.5 yuan / ton, but in November last year, the market supply situation tight, natural rubber prices rising rapidly, since early November has been accumulated increase of more than 30%.


"The recent high prices of natural rubber to run, increasing the cost of the tire industry, industry-wide losses are not alarmist." Qian Luntai Deputy General Manager Li Xiao Wu said. It is understood that natural rubber is the main raw material for tires, accounting for 40-50% of production costs. But now companies still use them to stock, once the stock runs out, companies will face enormous pressure. plastic containers wholesale


Response to rising raw material, the most direct way is to raise prices. However, Li Xiao Wu said: "we can not raise tire prices in January, and now whoever who suffer price increases, if the natural rubber is still high, in February may be mentioned." He also believes that, even though the tire industry to meet the formation of price increases resolution, various enterprises there will be no action. It is understood that tire industry has more than 300 companies, is a perfectly competitive market, price increases will be the first to hand over people to the market. desk pen holder


Li Xiao Wu said: "This year, the situation will not be too optimistic about the business, last year's not likely to happen." As early as the fourth quarter of last year, there are analysts believe the economy last year, a high degree of tire industry, in addition to driving the automotive industry, mainly due to days rubber prices plummeted dramatically reduce costs and improve gross margins caused by the rubber prices rebound situation, tire profitability of the enterprises has been difficult to sustain.


Ai-Hua Chen Guoxin Securities Industry analysts said the tire industry last year, gross profit margins than the 2007, 2008 high of around 5%, natural rubber prices will affect 5-10% gross margin. She expected this year, the same level of tire industry and the gross profit margin in 2008 quite. In addition, she believes that the automotive industry last year, sales increased by 40% this year, growth was estimated at 15-20%, and the pulling effect on the tire did not last year's, while the tires special case of the negative impact of protection is also difficult to eliminate.


Three weeks before the producing countries reached a consensus to maintain the lowest price of natural rubber in 2600 U.S. dollars / ton, as price conversion, natural rubber market price of 2.3 yuan / ton, down rubber in space is limited. The International Rubber Association, said last Friday due to tight supply of natural rubber in the first half 2010 prices are likely to rise further. Demand from China remains strong, in December 2009, China's natural rubber imports 18 million tons, chain rose 50% year on year surged 63.6%.