Raw materials drive tire prices to continue to rise
On April 20, Guizhou tire domestic sales department issued a notice on tire price adjustment. Due to the rising price of raw materials, Guizhou tire decided to increase the price of all steel and bias products by 2%-3% from May 1, 2022. At the same time, according to the rise of raw material prices and changes in the tire market, Guizhou tire will further adjust the product sales price.
Since 2022, China policy and other domestic tire leading enterprises have issued a notice of price increase. All products, including semi steel tires and all steel tires, have increased by between 2% and 5%. In addition, Michelin, Goodyear, Hantai and other foreign tire brands have also begun to raise prices.
In April, the tide of tire price rise is running. People in the tire industry predict that this year's tire price rise is expected to continue until the beginning of 2023, with two highlights running through it: first, the types of tires with price rise are relatively wide. Including ordinary automobile tires and engineering machinery tires, prices are rising. Second, the adjustment time span is large. Especially since new year's day, the price of tire products has been rising all the way.
In 2022, the situation in Russia and Ukraine was volatile, raw material prices continued to rise, and logistics costs continued to rise. Tire enterprises are under great pressure and constantly pay attention to the political situation in Russia and Ukraine. The price of industrial raw materials is difficult to fall in the short term. It is expected that the "price rise tide" will continue throughout the year. In previous years, the demand for tires in March and April was relatively strong, but this year the domestic epidemic situation was relatively severe. Many places across the country began to implement strict regional control, and many tire factories were affected by it to limit production or shut down. Logistics travel is greatly restricted. Due to the rise in oil prices, private cars have fewer trips, and the downstream demand for tires is low, so it is imperative to increase the price of tires in a series of ways.
Source: Poly glue