The rubber price uncontrolled tire industry once again called for the loss of the entire industry has reached nearly 50%

Crazy rising natural rubber prices once again brought together the domestic tire giants. On January 13, 2011, in the conference room of the China Rubber Industry Association, seven tire giants of the country held an emergency closed-door meeting to jointly discuss how to deal with raw material prices that are still rising.

In February 2010, when the natural rubber price entered the price of more than 25,000 yuan/ton, many market participants began to think that the rubber price was too high. However, the price of natural rubber has exceeded 30,000 yuan/ton, 35,000 yuan/ton, and 37,000 yuan/year afterwards. Tons and other psychological barriers.

“Since October 2010, there has been a frantic rise in natural rubber prices deviated from the value. The era of 30,000 yuan has become a thing of the past. At present, the price of natural rubber has approached the threshold of 40,000 yuan.” said Deng Yaxi, vice president of the China Rubber Industry Association. The soaring price of rubber has caused the production costs of tire companies in the country to rise in line and faces enormous pressures on negative profits.

For domestic tire companies, this is definitely a "death." In addition to the tremendous pressure from raw material prices to rise wildly, domestic tire companies must simultaneously meet the challenges of the downstream industrial chain. According to the participation of tire companies, tire dealers have increased their inventories based on expectations of price hikes for tires, which has increased by more than 50% year-on-year in 2009. Cost pressures on tire manufacturers cannot pass down.

Faced with rising cost pressures, on January 13, 2011, the China Rubber Association held an emergency tire economic analysis meeting in Beijing. Hangzhou Zhongce Rubber Co., Ltd., Aeolus Tyre Co., Ltd., Shuangqin Group Co., Ltd., Guizhou Tire Co., Ltd., Triangle Group Co., Ltd., Guangzhou Huanan Rubber Tyre Co., Ltd., Shandong Linglong Tire Co., Ltd. and other seven tire companies. At the meeting, it was agreed that the most direct and effective way to resolve the current plight of the tire industry and to stabilize the price of natural rubber is to put the state reserve glue into the market as soon as possible, and at the same time eliminate import tariffs on natural rubber as soon as possible.

However, relevant industry analysts believe that even if the country throws away reserves, it will only temporarily ease the pressure on tire companies, and even a glass of water. China’s dependence on natural rubber is too high, and the overcapacity in the tire industry is quite serious. This situation cannot be avoided. From another perspective, the current external pressure is a favorable opportunity for the industry to make structural adjustments.

To ease the cost pressure from the source, tire companies should speed up the pace and go abroad to grow natural rubber. Affected by the geographical environment, natural rubber produced in China has remained around 600,000 tons in recent years. About 70% of natural rubber in China depends on imports. Many companies go abroad to grow natural rubber, but progress has been slow.

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