The tire industry at the end of the year again raised the price tide: leading enterprises led the rise, small and medium-sized enterprises "stomach and back"

Liang Junfeng is a tire agent in Qingdao. His company sells more than a dozen domestic and foreign tire brands. "Since the second half of last year, we have frequently received price increase letters from tire companies, and we have received more than a dozen in the last month." Liang Junfeng told the 21st Century Business Herald reporter.

In fact, since last year, price increases have become one of the key words of the tire industry. Under the pressure of rising raw material prices, the tire industry set off another round of price increases. At the end of the year, a new wave of price increases in the industry followed.

The 21st Century Business Herald reporter found that recently, Youdao, Gitong, new, Kumho, Goodyear and other tire industry leaders have issued price increase notices, affected by the continued rise in raw material prices, these companies have decided to adjust product prices again since January 2022. In the context of continuous price increases, the upstream and downstream tire industry chain is under greater pressure.

Price increase letters issued intensively

Yang Lin is a long-distance truck driver in Changsha, Hunan province. He often travels between Changsha and Guangzhou and Shenzhen. Due to the generally long distance, tires need to be replaced almost every few months. "Since the second half of 2021, it is obvious that the price of tires is rising, and the same brand of tires, about 800 yuan in the first half, now needs at least 1,000 yuan."

Indeed, since the second half of last year, the tire industry has carried out at least three rounds of price increases, and just ushered in the New Year, the industry price surge again.

Recently, Youdao, Gitong, New, Kumho, Goodyear and other major tire leaders have joined the price increase army, decided to adjust the product price again from January 2022, the increase is generally between 3% and 6%. Driven by leading enterprises, the price rise of the tire industry inevitably opened again, and small and medium-sized enterprises have also followed up the price increase.

"Since the second half of 2021, price increase letters of various brands in the market have been frequently released, and the price of our company's tire products has increased by 8% to 9%, which is indeed a rare situation." Double money Group (Anhui) Hui Hui Tire Co., LTD. Market channel manager Wang Yunwei told the 21st Century Business Herald reporter.

Industry insiders said that since the second half of last year, the price of tires has not only continued to rise, but also the number of price increases has not been for many years. The reason for the price increase, on the one hand, rubber, steel, carbon black, chemical accessories and other tire raw materials prices continue to be high, on the other hand, industrial electricity, natural gas and other energy prices rose, pushing up the manufacturing cost of tires.

Raw material prices have risen wildly, making the procurement costs of tire companies soar directly. Some tire companies said that in the third quarter of 2021, the comprehensive procurement cost of five main raw materials, such as natural rubber, synthetic rubber, carbon black, steel cord and cord fabric, increased by more than 20% over the same period last year.

Data show that in 2021, the monthly cost of all steel tire raw materials is one to 40% higher than the same period, and the average price of tire raw materials in 2021 rose 26% year-on-year, while the average price of all steel tires rose less than 10% year-on-year.

"In 2021, raw materials at their peak can rise by 30%, and now they have fallen back some, but generally speaking, price increases have been rare in the past 20 years." Zhao Guang, chairman of Chaoyang Huaxing Wanda Tire Co., LTD., said helplessly.

In addition, since last year, coupled with the continuous rise in shipping costs, transportation capacity continues to be tight, and the price increase of the tire industry has also formed a push. Some tire companies said that the reason why the performance is under pressure is mainly due to the continuous rise in raw material prices and product sales prices can not rise simultaneously, international transportation capacity constraints tire exports, export sea freight sharply increased and other factors.

Talking about the price increase of the company's tire products, Wang Yunwei told the 21st Century Business Herald reporter, "On the one hand, the cost of raw materials is rising, on the other hand, the oil price is at a high level, resulting in high transportation, warehousing and other costs, so it has to rise."

Grab the "air outlet" of new energy vehicles

In 2021, for tire companies, especially small and medium-sized enterprises, on the one hand, they are facing the sound of "rising" raw materials, and on the other hand, market demand is shrinking. It can be said that tire companies are facing the dilemma of "back and forth".

The person in charge of a small tire company told the 21st Century Business Herald that the product prices of tire companies have risen, but the time of transmission to the terminal market will be delayed. "From last year's market situation, due to the first half of the dealer's stock did not digest, the price surge arrived, dealers purchase enthusiasm became low, the market can not synchronize price increases."