[Chemical market under "dual control"] Tire market rises in price

The tire market, which has just disappeared for two months, has recently ushered in a violent price increase! Under the influence of "dual control" of energy consumption and power curtailment, the operating rate of tire factories has fallen, coupled with the soaring prices of raw materials such as steel and carbon black, and higher logistics costs, causing tire manufacturers to double the pressure and raising tire prices one after another

In fact, since Michelin China fired its first price increase at the end of August, more than 70 domestic and foreign tire companies including Linglong Tire, Giti Tire, Magis, Michelin, Goodyear, etc.

Energy consumption warning raw materials are limited

Recently, the National Development and Reform Commission released the "Barometer of Completion of Energy Consumption Dual Control Targets in Various Regions in the First Half of 2021", which pointed out that the energy intensity of 9 provinces (regions) did not decrease but increased in the first half of 2021, which is a first-level warning

Iron and steel is one of the high energy-consuming industries.

The price of carbon black, another important raw material for tires, has also soared

Recently, Jiangxi Black Cat Carbon Black Co.

Judging from the raw material natural rubber market, the price of natural rubber has fluctuated up for 18 consecutive months

"Price increases are really helpless.

Logistics costs push up prices

Another reason for the increase in tire prices is the high cost of shipping

It is understood that shipping prices have actually begun to rise gradually in June 2020

"Not only the sea freight prices are skyrocketing, but the container is also'difficult to find.

The data shows that from June last year to early September this year, the price of a standard container on the West Coast of the United States soared from US$1,000 to US$10,000.

The increase in logistics costs has given rise to rising costs for export companies, which has further reduced the meager profit margins of small and medium-sized tire companies.

However, it has been learned from the shipping market recently that shipping prices from Ningbo Port and Shanghai Port to the west coast of the United States have fallen sharply

Accelerate the pace of transformation and upgrading

　　An industry insider believes that the recent wave of price increases is the result of tire factories being forced by cost pressures.

　　With limited production and reduced profits, where is the way out for domestic tire companies?

　　Many industry insiders said that the current continuous increase in energy consumption "dual control" policy seems to have restricted the current development of tire manufacturers, and in essence it is forcing China's tire industry to achieve high-quality development of the transformation and upgrading
.

　　Fortunately, some domestic tire companies have been continuously optimizing, transforming and upgrading, and the dual-cycle pattern is being fulfilled
.

　　It is understood that Linglong Tire has formulated a "7+5" global industrial layout development strategy
.
At present, the company has 5 domestic production bases in Zhaoyuan, Dezhou, Liuzhou, Jingmen, and Changchun, and plans to build a sixth production base in Tongchuan City, Shaanxi Province; 2 overseas production bases in Thailand and Serbia (under construction).
And continue to investigate and build factories on a global scale, and strive to fully complete the "7+5" global layout by 2030
.
Sen Kirin has formulated the "833plus" strategic plan, and plans to deploy 8 digital intelligent manufacturing bases around the world in about 10 years, realize the operation of 3 R&D centers and 3 user experience centers at the same time, and select the opportunity to acquire an internationally renowned tire company
.
GM has also continued to increase the construction of its international production base.
In June, it launched the 6 million semi-steel radial tire project in Cambodia, which has become a new milestone in the company's global layout.
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