One year, the international natural rubber price rose from 8,000 yuan / ton to 27,000 yuan / ton, a cumulative increase of more than 300%, exceeding the historical record of 1952. Such high prices have finally made it impossible for downstream rubber producers to sustain themselves.

Some well-known tire manufacturers said in an interview that tire prices have reached a foregone conclusion, and the average increase will reach 10% to 15%. For economic tires, according to a 10% increase, each tire will have to increase its price by 50 percent. 70 yuan.

The rubber gloves also raised the price from the original one yuan to 1.3 yuan to 1.4 yuan.

Even so, analysts still expect natural rubber prices to continue in the context of increased demand, reduced production, and capital speculation.

Tire prices rose again

Rubber product manufacturers can only transfer cost pressures through price increases. The world’s major tire manufacturers include Bridgestone, Michelin, Goodyear, and Malay, which have generally raised prices by 10%-15% in 2010, as well as claims from manufacturers. A new round of price increases is brewing.

Take the most mainstream economical car tires on the market as an example, the original price is generally 500 to 700 yuan each. If the price increases by 10%, each tire's increase is between 50-70 yuan.

Huang Qingyan, head of public relations at Hankook Tire Co., said in an interview with reporters that Hankook Tire raised the price of some commonly used products from September 1, 2010, and the retail price increase range is roughly 2%-5%. Previously, Hankook Tire had raised product prices twice in February and May 2010.

The sky-high price rubber behind the scenes

Deng Yaxi, secretary-general of the China Rubber Industry Association, said in an interview with reporters that the price of natural rubber soared in recent days. Except for the supply gap, the main reason was that funds had entered since September and speculation was being made under the background of “demand tension”.

She believes that the current price of rubber has far exceeded the normal range. At present, all related rubber products have been affected by this round of price shocks, especially tire companies. According to the data from the Tire Branch of the Rubber Industry Association, the company’s cost expenses increased by 30% year-on-year, loss-making companies increased, and the loss reached 20.9%.

Deng Yachen said that the cost crisis of tire companies is likely to affect the downstream automotive industry. Therefore, in order to stabilize the price of rubber, the Association will call on the government to sell the reserve rubber, and at the same time call on the government to reduce the rubber import tax to ease the current pattern of supply and demand.

Tension or difficulty to ease

However, foreign analysts expect that the momentum of rubber prices running at high levels will not weaken for the time being. The supply of natural rubber is insufficient, but the demand for it is increasing.

The Association of Natural Rubber Producing Countries predicts that strong growth in demand for cars and lower production will force China's rubber imports to increase by 41.5% in the October-December quarter.

Industry insiders expect that this round of tire inflation starting from September will continue until the end of the year. Dealers across the country may raise prices by the end of the year due to different inventory levels. If rubber prices remain high in the future, a new round of price increases will be inevitable.

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