In 2014, China’s tire prices plunged endlessly and currently fell by more than 10%. Reporters believe that the analysis time from decline and raw material supply and demand relatively tires and tire rubber, tire prices will continue to dip, it can hardly be reversed in the first half of 2015. First, supply exceeds demand is the main driving force for downward prices. After more than 10 years of rapid development, especially in the past two years after investment in “blowouts,†China’s tires have suffered serious structural excesses in both passenger tires and truck tires, that is, excess mid- to low-end homogenized tires and high-end and green tires. Notched 046 main tire companies' inventory in September increased by more than 30% year-on-year, and inventory was generally 1.5 to 2 months. The operating rate of tire companies continued to drop and fell to the low level during the year. Some factories in Shandong closed the workshop and laid off large-scale workers. China's tire concentration is relatively low, the low operating rate and high inventory are easy for companies to let the market keep prices down and push down each other, leading to a downward focus on prices. As the negative effects of the “double reverse†case of US tires on China continue to ferment, the domestic tire industry will face greater pressure for survival, and the price of passenger tires will have a greater downward kinetic energy. In particular, at the end of recent years, in order to deter volume, tire companies may launch a new wave of price cuts in the near future. The promotion of recycling funds will be the main theme. Second, there is still some room for price drop. The price of natural rubber dropped from nearly 36,000 yuan/ton in May 2011 to nearly 13,000 yuan/ton now, a drop of up to 63.9%. At the same time, tire prices also showed a downward trend, car tire price index fell 25.5%, truck tire price index fell 30.98% 0 natural rubber accounted for nearly 50% of total tire costs, from the tire cost composition analysis, China's car tire prices are still about 5% Falling space, truck tires have a relatively small space for decline, about 1% to 2%. This is also the main reason that the recent decline in the price of car tires is significantly greater than that of truck tires. Third, the price decline will continue for some time. The transfer of rubber and other raw material costs to the downstream tire industry has a certain time difference. From the traditional experience, this time difference is more than six months. Now the rubber continues to bottom out, at most in the bottom area, and rubber prices have yet to show signs of reversing. According to empirical calculations, it takes more than six months for China’s tire prices to stabilize or increase. Although with the arrival of the traditional Spring Festival, traffic and transportation peaked, the demand for tires increased, and the decrease in tire prices would decrease, but the decline was still the main tone. In summary, the general trend of the price of passenger tires in China is expected to decline by 5% to 10%, depending on the “double reverse†situation in the United States. The price of truck tires will continue to decline slightly, at a rate of around 2%, which is already close to the bottom. Tire prices are reversed and optimism is expected to occur in the second half of next year. Ningbo Sunhon International Co., Ltd. , https://www.scooterelectricadult.com
Tire prices plunged or fell to the second half of next year