China's tire industry faces a test due to soaring

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Soaring raw materials China's tire industry is facing a test

the soaring price of natural rubber has once again brought together domestic tire giants. On the afternoon of the 13th, in the conference room of China Rubber Industry Association, 7 domestic tire giants held an emergency closed door meeting to discuss how to deal with the soaring raw material prices

38220 yuan per ton, which is the closing price of the main 1105 contract of Shanghai natural rubber futures on January 13, approaching the record high of 39800 yuan/ton set in November last year. In 2010, the price of natural rubber has risen by more than 80% and the price of natural rubber has doubled so far

"since October, 2010, the price of natural rubber has gone up wildly, which deviates from the value. The 30000 Yuan era has become a thing of the past. At present, the price of natural rubber has approached the 40000 yuan level." Dengyali, vice president of China Rubber Industry Association, said that the soaring price of rubber has caused the production costs of domestic tire enterprises to rise sharply, facing the huge pressure of negative profits

for domestic tire enterprises, this is definitely a "life and death disaster". In addition to the huge pressure from the crazy rise in raw material prices, domestic tire enterprises must also deal with the challenges of the downstream of the industrial chain. According to the introduction of tire enterprises participating in the meeting, based on the expectation of tire price rise, dealers have increased their inventory one after another, which has increased by more than 50% year-on-year. The cost pressure of tire manufacturers can not be passed down at all

chenyaofeng, a representative of shuangqian Group Co., Ltd., said that the cost of tires in the industry has increased by more than 50%, but the price increase did not exceed 20% in the whole year last year. Tire enterprises can not quickly pass on the pressure of rising costs, making their survival "worse"

the participating enterprises told that it is expected that the average profit of the tire industry in 2010 will decline by 30%-50% year-on-year, and the products will sell well at home and abroad. In the first quarter of this year, the situation will be even worse, and many enterprises will suffer losses

it is understood that since last year, the high price of natural rubber has raised the production cost of tire enterprises by 50%. Although the enterprise has raised the tire price for many times, it is still unable to offset the sharp increase in costs caused by the rise in the price of raw materials. From January to November last year, the profit of the tire industry fell by 22% year-on-year, with a loss of 26%. Moreover, from the perspective of the downstream tire market, the truck and bus manufacturers and construction machinery manufacturers and the maintenance market have clearly expressed their unacceptability to the continuously rising tire prices, which will severely squeeze the tire market this year

in this context, most tire enterprises have to start planning to reduce production, or even stop production. In order to cope with the current soaring natural rubber prices, seven tire enterprises are preparing to take advantage of the Spring Festival holiday and plan to stop production for about half a month, so as to reduce the use of high priced raw materials to produce tires

"as a general rule, January to February is the traditional off-season for natural rubber demand. Coupled with good weather in Thailand, Malaysia and other rubber producing countries this year, why is the price still rising so sharply? It is mainly because of capital speculation. At present, international capital speculators are still betting that the price will continue to rise." Shenjinrong, chairman of Hangzhou Zhongce Rubber Co., Ltd., said

"China's natural rubber futures market is now a casino." Shenjinrong said that at present, the day with the largest position of natural rubber futures is close to 200000 hands, the day with the largest trading volume is close to 2million hands, and 1.5 million hands is a normal situation. "The trading volume with a linear degree of plus or minus 1 joule per day exceeds the consumption of China in two years. There is too much hot money in China's rubber futures trading market!" Shenjinrong said

it is reported that the global annual consumption of natural rubber is about 9 million tons, of which China's consumption is more than 3 million tons, accounting for about one third of the global consumption. In this way, the global market for natural rubber has not been large since the mid-910s. Therefore, if the government invests about 100000 tons of national storage rubber, it can stabilize the spot market price of the whole natural rubber

"China's tire industry is experiencing unprecedented difficulties and needs the concerted efforts of the enterprise itself, the industry and the government to tide over the difficulties." Caiweimin, Secretary General of tire branch of China Rubber Industry Association, suggested that the government should improve the reserve mediation mechanism, seize the favorable opportunity to release national reserve rubber, improve the trading varieties of rubber futures market, and stabilize the excessively high market prices of natural rubber. At the same time, the relevant government departments are urged to make decisions to reduce the import tariff of natural rubber as soon as possible, and urge synthetic rubber manufacturers to regulate the price of synthetic rubber, so as to ensure the stable and healthy development of the domestic tire industry

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