Recently, domestic tire enterprises have experienced a wave of concentrated price hikes, with multiple companies issuing price increotices. This price surge covers various categories, including full-steel tires, semi-steel tires, inner tubes, OTR tires, and others, attracting widespread market attention.

 According to incomplet statistics, on March 9 alone, multiple enterprises including Doublestar, Maxxis, General Tire, Yanchang Rubber, Aeolus Tires, Wantong, andubber issued price increase notifications.
Multiple Leading Enterprises Raise Prices

Doublestar Group: Starting from April 1, prices for full-steel tire products will be incresed by 3%~4%;

Maxxis: Starting from March 21, prices for all tire products will be increased by 5%, with new prices based on the delivery date;

General Titarting from March 16, sales policies for TBR products will be tightened and prices increased, with an overall magnitude of 3%~5%;

Yanchang l moderately increase TBR product prices by 3%~5% in the near future;

Aeolus Tires: Starting from April 1, prices for the entire ct line will be increased by 2%~5%;

Wantong: Starting from March 16, invoicing prices for all brands and product series of T, PCR, and OTR tires will be increased by 3% to 5%;

Bayi Rubber: Starting from March 27, prices for various product series will be inreased by 2%~4%.

Prior to this, multiple enterprises such as Goodyear, Zhongce Rubber, Linglong Tire, and Guizhou Tire had already issued price increasices.

Price Hikes Fail to Cover Cost Increases

The magnitude of this price adjustment is mostly between 2%~5%. Multiple enterprises stated that this adjustment is far from sufficient tost increases, and they will adjust prices opportunistically based on raw material prices and market changes in the future.

The main reason for the price increase is the recent sharp rise in nergy costs, transportation costs, and raw material prices such as natural rubber, synthetic rubber, carbon black, and skeleton materials.

Taking natural rubber as an example, prices have risen steadily sinFebruary. In March, they directly broke through the high of 17,000 yuan/ton, once reaching the 18,000 yuan/tomark, with a year-on-year increase of over 10%.

The prices of products like synthetic rubber and carbon black are directly transmitted by the surge in crude oil prices.

As'barometer' of the global energy market, international oil prices are deeply tied to the geopolitical situation in the Middle East. Large-scale military actions by the US and Israel against Iran have drive oil prices to their highest level in nearly 3 years, causing prices of petrochemical raw materials like butadiene to rise accordingly, transmitting cost pressure.
Upstream Raw Ma Face Supply Interruption Risks

It is worth noting that the instability of the international situation, when transmitted to tire enterprises, not only causes significant fluctuations in raw material prices and expot obstacles, but also instability in the supply chain.

In addition to being a major producer of crude oil, the Middle East is also a major producer of chemicals such as methanoland bromine. A contraction in the production capacity of upstream raw material enterprises will be transmitted step by step to other supporting links, forming a supply shortage across the entire chain.

 Some tire raw materil suppliers, in addition to notifying price increases, have also informed that they cannot guarantee timely supply, leaving tire enterprises facing the risk of raw material shortages.

 This supply-side contraction directly ts the normal production rhythm of tire enterprises and requires high attention from industry players.

 The above article is sourced from the news information of the China Rubber Industry Association, 《China Rubber》 magazin