Rubber soared and broke through 15,000. Zhongce, Kumho, Double- coin, Bayi announced price increases again in November!

On October 19, natural rubber futures suddenly surged and broke through the 15,000 yuan/ton mark, with the highest price of 15,650 yuan per ton. The main contract of No. 20 rubber (NR) even hit the daily limit. By the end of the market, the price of rubber dropped and the closing price For 15,255 yuan per ton, an increase of 4.41%.

Raw material price increase + power limit and production limit.Tire companies raise prices again in November

It is knowed that not only the price of natural rubber, but also styrene butadiene rubber has increased by 42.3% in the past year! The price of steel cord for tires has increased by 11.62% throughout the year! The price of carbon black has also risen by 53% in the past year!

At the same time, some tire companies can only do four days off and three days a week due to the impact of power restrictions, and their production capacity is very limited.

Under the influence of the price increase of raw materials and the power limit and production limit policy, tire companies set off a price increase frenzy in October! 80 tire companies announced that they will start to increase prices in October!

These include Michelin, Zhongce Rubber, Linglong Tire, Sailun Tire, Magis, Giti Tire, Dunlop, Hankook Tire, Triangle Tire, Aeolus Tire... and other well-known companies.

Less than half a month, many tire companies increased their prices again in November on the basis of their first price increase! A bigger increase! And no longer accept prepayments!

Zhongce Rubber stated that due to the dual control of energy consumption, rising raw material prices, and strong domestic and foreign demand, the production capacity was tight. On November 1, the price adjustment of PCR tires was carried out. The giants shall follow the company's official price adjustment documents.

The price of Linglong Tire’s TBR tyre increased by 3%-5% on October 1, and the price of TBR tyre increased by 3% on November 1.

Jiangsu General Tire will increase the price of all-steel tires by 3%-5% on October 11, and will increase the price of all-steel tires by 3% again on November 1st.

On November 1st, on the basis of October 15th, Haohua Tire raised the price of all PCR and TBR series products by 5%, and at the same time, no advance payment is accepted.

On November 20, Kumho Tire increased the price of OE-equipped tires by 3%-5%, and adjusted prices simultaneously online and offline.

Bayi rubber also issued a notice, on the basis of October 12, the price of each product series will be raised again by 3%-5% on November 5.

After Double-coin Tire issued the price increase notice on October 2, it announced the price increase again half a month later. Starting from October 26, 2021, the price of all-steel tires and bias tires will be increased by 2%-4%.

The second wave of tire price increases comes ahead of schedule

The tire price increase in October has not been overwhelming. The second round of tire price increases in November has already formed. Some tire dealers said that the second round of tire price increases was faster than expected!

Tire prices increasment may continue to next year

On October 19, the main thermal coal contract rose 8.93% to 1913 yuan per ton, and the cumulative increase has exceeded 50% in the past 7 trading days. The price of thermal coal continues to rise, and the country’s thermal power generation is also affected. Future power curtailment is expected to continue for a long time. The impact of power curtailment and environmental protection in winter will further limit tire production capacity.

At the same time, tire rubber, carbon black, steel wire and other raw materials are still at a continuously high level, and there is no price reduction phenomenon. Even if it drops now, the feedback on tire prices will be 2-3 months away.

Affected by the decline in ocean freight, the export market of tire companies has opened up, and the demand for increased prices is expected to increase, and the demand of tire companies has increased significantly.

Therefore, under the triple influence of the general price increase of raw materials, the limited production capacity of tire companies, and the impact of increased demand for tires, tire companies have a strong willingness to increase prices. The October wave has not yet finished, and the November price increase is already in preparation. .

In the next 2-3 months, tires will enter a price increase cycle. Industry experts predict that tire prices may rise by 8%-10% in the next three months, that is, from October to December.