Tire prices are a manufacturer test?

Recently, rising tire prices have become the focus of public discussion.

The news that the three major rubber-producing countries will reduce production and restrict exports has contributed to this wave of "price increases."

Enterprise test market reaction

It is reported that tire manufacturers have raised prices and issued price notifications. Starting from July 10th, the price of East China Rubber and Shandong Chuanghua Tire will increase by 3%.

Huasheng Rubber will raise the price of all-steel tire products by 5%-10% from July 1st, and Tangshan Zhongyuan Tire Inner Tube Products will increase by 3% from July 1.

It has been observed that at present, the industrial chain of the entire tire industry is in a phase of excess, and the raw rubber and carbon black of tires have not risen.

Tire industry sources said that using information asymmetry, industry rules and other factors, financial speculators have created a wave of "rubber prices" in the end of 2016 to early 2017.

Today, when rubber prices have returned to previous years, some speculators have started to cut production and restrict exports in the main producing country of speculation, in an attempt to raise rubber prices again.

Some tire companies also took the opportunity to rise slightly to test the market's response.

The media visited a number of tire dealers and store outlets, seeing the spectacle as analysts said, tire prices actually do not have too much reflected in the consumer side.

Even by the "super limited" and the economic downturn, even in the tire sales season in July, "the number of tires to change the tires every day at the store is not a lot." There are tire sales manager said.

Capital speculation pushes up rubber prices

Some rubber industry analysts said that in 2016, flooding occurred in major rubber-producing countries, and rubber production was expected to decrease significantly. Under the speculation of domestic futures capital and speculators, rubber prices rose rapidly.

However, the fact is that the reduction in rubber production in Thailand is limited, and rubber prices have fallen due to the unsatisfied anticipation of the imbalance in supply and demand of rubber.

At the same time, as the downstream tire companies did not dare to significantly increase their inventory of raw materials, rubber stocks continued to be high.

The above analysts believe that the current market is different from last year, with high rubber inventories, declining operating rates of tire companies, and tire sales, and it is difficult for rubber and tire prices to have much room for growth.

Tire terminal sales are not booming

Many people in the industry who have been engaged in tire sales for many years stated that the soaring price of tires has actually not been reflected in the consumer side.

The person also said that after years of madness, capital has been difficult to speculate on rising rubber prices.

For some time in the future, tire prices will be difficult to rise, to maintain stability, and it is not ruled out that some tire companies will use promotions and price cuts to reduce inventory.

It is understood that in the tire production and marketing provinces such as Shandong, with the contraction of orders, the operating rate of tire companies decreased year-on-year.

It is worth mentioning that the ups and downs of rubber prices are not conducive to the survival of SMEs. Their capital chain and reserves of raw materials are not enough to allow them to deal with the impact.

The above persons suggested that as the terminal of the tire industry, most tire dealers and shopkeepers should maintain short-term stocks, and cash is king. Do not blindly listen to rumors to expand stocks, so as to avoid unnecessary losses.