Raw material prices rose a lot of product backlog tire companies face double pressure

As the prices of raw materials for domestic tires have risen sharply, Jiatong Tire (600182.SH) is undergoing a test. Yesterday, Wu Zhiwen, director of the company's tires, told reporters that the company was conducting internal discussions on the issue of raising prices. However, the cooling of the auto industry has led to a large backlog of domestic tire products, and tire distribution has seen a rise and fall.
While brewing price increases while the promotion price cuts on whether or not Jiatong weighs up, the Pulley tires and Hankook Tire are promoting. This kind of sales promotion is actually a performance reduction. A dealer told reporters that the force of the gold cup tire back is "buy eight get one", back to the Santana 2000 tires and Hankook Tire products are "buy ten get one." The dealer complained to reporters: "A lot of tire sales companies are facing the problem of backlog of goods."
However, Shen Huixing, general manager of Shanghai Quyang Tire Co., Ltd., said that some products that are subject to price increases have not yet risen. "We do the Goodyear's distributor, the price of car tires has not changed at present, the prices of tread rubber and card passenger car tires have been increased. Card passenger car tires have increased prices by 5%." He said.
A Shanghai salesman of Nanjing Kumho Tire Co., Ltd., a staff member of Shanghai Aotai Trading Co., Ltd., said that the prices of most commonly used cars have increased by 15%, involving dozens of species.
Another Kumho dealer complained to the reporter: “Although Kumho has already raised its price, the sales situation after the price increase is very unsatisfactory. On Saturday, the company’s headquarters came to discuss the dealership in relation to poor sales. Yes, I guess they will make big promotions next."
According to Tan Yukun, deputy secretary-general of the tire division of the China Rubber Industry Association, most truck and bus tires have already increased in price. Car tires are not so obvious because the profit margin is still relatively large. “There are a lot of raw materials for trucks and buses, so it is impossible to not increase prices. It is worth noting that from January to May this year, the price of natural rubber has not changed. In June, natural rubber began to increase its price, which was almost 1 month per ton. More than 1,000 yuan, from the original 12,000 yuan / ton to the current 16,000 yuan / ton, this phenomenon has not yet been reflected in the production of passenger car tires." For now there is a rising or falling car tire market, he believes this will give production companies and The sellers have brought difficulties.
The soaring prices of raw materials, said Wu Zhiwen, now that the price of oil has reached a historical high, making the prices of raw materials such as tires and rubber products more likely to rise. Compared with the same period of last year, the butadiene rubber in synthetic rubber rose by more than 30%, and the price of antioxidants in chemical additives rose by about 80% compared with the same period of last year. However, due to factors such as poor climate in the rubber-producing area, the price of natural rubber is gradually increasing.
The reporter learned from Shengao Chemical Co., Ltd., the largest anti-aging agent manufacturer in China, that 4020 models of anti-aging agents last year had a price of about 38,000 yuan/ton, and in June this year they began to soar to 44,000 yuan/ton, which has exceeded market expectations. "It is now about 45,000/ton to 46,000 yuan/ton." Miss Wu, the company's sales department, told reporters that the increase in the price of anti-aging agents is due to the fact that the aniline, the raw material for antioxidants, has risen by 50% this year. The company predicts that the current rising trend of raw material prices will not be reversed in the short term and is expected to continue to affect the company’s operations in the second half of the year.

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