Rubber prices lower tire prices may brake

The price of natural rubber that has been soaring has braked, and the price of natural rubber futures has been running low for many days. Yesterday, the reporter learned that Shanghai Hujiao closing quotation has been around 35,000 yuan / ton, and a month ago, rubber prices once rushed to 43,000 yuan / ton. According to the China Rubber Industry Association, if the price of rubber falls in the future, it will ease the cost pressure on tire companies and curb the rise in tire terminal prices.

On March 10th, Hujiao closed at 1105 to close at 35,195 yuan per ton, which was 935 yuan less than the previous day; 1106 was at 34,460 yuan per ton, down 1020 yuan. "About 80% of China's natural rubber is imported, and there is no pricing power or bargaining power in the international market. All are following foreign markets." Deng Yaxi, secretary-general of the China Rubber Industry Association, said that since last year, rubber had been 40,000 yuan/ton. The price stayed on for more than a month, the production cost of tyre enterprises increased sharply, and profitability was greatly weakened.

According to statistics from the China Rubber Industry Association, last year, the domestic tire companies faced a loss of more than 20%. From January to February this year, the loss of tire companies has exceeded 50%. This year, tire companies such as Michelin and Bridgestone have once again announced price increases of 5% to 8% in China's tire matching and replacement market. Domestic tire companies such as Shuangqian and Huanan have again raised prices of domestic tires by 5% to 8%, and exported tires. The price is about 6%.

"It's nice to see that the price of rubber hasn't gone up, and it has even fallen." Deng Yaxi said. Goodyear Chongqing agent Xie Yong said that the drop in the price of natural rubber could ease pressure on manufacturers' production costs and curb the trend of price increase in the tire terminal market.

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