Soaring prices of raw materials may be secondary tire prices

by knitsteel

Soaring prices of raw materials may be secondary tire prices

According to an authoritative source, the face of trade barriers under the severe export situation, “the tire industry, entry conditions,” “tire industry, industrial policy” and other tire-related policy is expected by the end of March to early April issued by the Ministry of Industry.

This is for the tire industry, including Qianlun Tai, Aeolus, Qingdao Double Star, Double the money stock and other large enterprises is undoubtedly good news, but as of this writing, the Ministry of Industry and related policies have not yet released.

        On the other hand, due to raw materials including natural rubber, synthetic rubber prices, many tire companies have chosen to deal with rising costs raise prices, but the price increase is also risky, because if the price is too high it will face tremendous pressure stocks .

Care price increases of raw materials prices rose enterprise

Three tires were raw natural rubber, polybutadiene rubber, styrene butadiene rubber. Natural rubber which account for approximately 40% of cost.

Industrial Securities in a recent research report chemical industry: crude oil prices since the beginning lines along the way, push up prices of raw materials butadiene, synthetic rubber prices to trend up, and drive up the natural rubber. This year, natural rubber, styrene butadiene rubber, polybutadiene rubber cumulative increase of 12.5%, respectively, 6.8%, 11.5%, rubber prices on tire pressure form the costs.

In fact, from natural rubber prices started to rise in early 2009, when the price of natural rubber is only 10,000 yuan / ton, while the international futures market, natural rubber prices have more than 29,000 yuan / ton. Rubber prices, the current downstream of the tire industry has been conducted, tire prices 2% -10% gain.

In order to cope with the rising prices of raw materials, many tire companies have been carried out in January this year, product price increases. With raw materials prices continue to rise, tire a second wave of the recent price increases will tide?

“Securities Daily” reporters yesterday, calling Qianlun Tai, an insider told reporters: “We put in a little price in January, price increases in the range of 5%. The most important thing is to digest raw material prices pressures. As for the recent Council price increases will not need to look at the market situation, look at it. ”

The Aeolus secretaries to directorate strong Korean law also told reporters: “Our products are also carried out in the January price increases, the specific price increase can not say, price increase is based on the cost and market demand to set. The recent price increases will also depends on market conditions. ”

However, investment consultant in the chemical industry wisdom that researchers often Yi, China’s tire industry is highly competitive industry, most businesses do not have pricing power, so are afraid to raise prices substantially, so the rate of price increase can not be fully offset the rate of rising costs .

This argument has been Qianlun Tai and Aeolus people agree. They told reporters: “the right tire missing discourse has existed a need to strengthen and downstream enterprises of strategic partnership.”

“If the price increase is too high, the product will not sell out, thus increasing the stock.” Qian Luntai these people told reporters. Perhaps this is not a substantial price increase tire business reasons.

State reserve 100,000 t want to throw reduce the price of natural rubber

According to statistics, the fourth quarter of 2009, the profits of the domestic tire chain sharp drop in pre-tax profits of some enterprises fell by more than 20% of the chain. Some analysts said that entered in 2010, the day of domestic tire companies will not be better, gross margin will not reach last year’s level.

Can be seen soaring prices of raw materials has led to tire of earnings. However this time, the State Reserve 100,000 tons of natural rubber cast the news exciting.

Sources said that following the auction sale of 14 after the first batch of natural rubber, this week the five State Reserves Bureau will use competitive bidding by throwing the second batch of 30,000 tons storage of natural rubber, in order to suppress price growth trend. Some experts said the country throws up reservoir pressure trend in natural rubber prices to control prices and to protect the domestic auto industry is expected to throw reserves total will reach 100,000 tons, carried out in three batches.

Analysts said the rapid rise of domestic prices this year, rubber products for automotive and some of the important raw material of life, have an indirect impact on domestic prices.

Investment Advisor in the chemical industry researcher Yi Zhi Chang believes that a lot of liquidity for the speculation and hype, the price of rubber also contributed to one of the reasons.

The impact of factors such as speculators hoarding, rubber prices slow conduction of downstream products, is expected to affect the tires and other downstream products will be delayed 2-3 months.

This year the situation is not optimistic

But with the arrival in May, during peak demand, tire companies still have high looting goods, what is more blind expansion of production capacity, coupled with tires safeguard the inhibition of exports will be concentrated in the show this year, many tire companies are faced soaring costs overcapacity, export obstruction.

2009 tires safeguard to “keep the blessing in disguise,” but in the natural rubber price trend is not objective, “the impact of tires safeguard embodied in this year’s” dual role, the “For enterprises, this will be the best difficult year, must do to prepare to fight protracted. “Shandong Rubber Industry Association vice chairman Zheng Yongxiang told the media.

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