Around May, the tire industry witnessed a wide-ranging price adjustment. International leading brands such as Michelin, Bridgestone, and Continental announced price hikes for their products. Domestic leading enterprises like Sino-Ke Tire, Linglong Tire, and Zhongce Rubber also raised the prices of their products simultaneously, showing a feature of both domestic and foreign investment participation and covering all product categories. More than 80 companies implemented price increases. At the same time, SUNDOM Tire also decided to raise tire prices in May.
This round of price adjustment was mainly influenced by the complex and volatile international situation and the fluctuations in the global commodity market. The prices of tire raw materials continued to rise, and at the same time, the related energy, logistics and supporting costs also kept climbing, resulting in significant pressure on the overall manufacturing cost of tires. This is not an isolated situation for any single enterprise. Zhou Lingkun, the president of Linglong Tire, said: "The core factor of this round of industry centralized price adjustment is the passive transmission of various cost pressures. The raw material side was affected by the US-Iraq war, and the prices of main raw materials such as natural rubber, synthetic rubber, carbon black, and steel cord continued to rise. Coupled with the intensified fluctuations in international shipping costs, the unit product cost significantly increased."
In fact, this round of price increase was not initiated by the tire manufacturers. Instead, it was caused by the continuous and significant rise in core raw materials such as natural rubber, synthetic rubber, and carbon black, combined with the increase in costs such as energy and logistics, as well as the geopolitical conflicts. As is well known, the manufacturing of tires involves a wide variety of raw materials. The fluctuations in the prices of natural rubber, synthetic rubber, carbon black, steel cord, tire fabric, and rubber additives all directly affect the production costs, thereby determining the prices of tire products.
After the price increase wave, the concentration of the Chinese tire industry will continue to increase and accelerate the upgrading of product structure. In recent years, China's industrial policies for the tire industry have become more scientific and standardized. There are many legislations in terms of safety and environmental protection. The entry threshold for the tire industry is constantly rising, product quality and performance standards are improving, especially in Shandong, the entry rules for the tire industry have become more standardized. Especially under the policy of eliminating backward production capacity, backward production capacity is accelerating to be cleared.
Who is SUNDOM TYRE ?
