A number of tire producers had leaked information last year, saying they will adjust up the product prices this year.
At the beginning of this year, many of them announced to raise product prices, and some of them have lifted their prices for a few times within a short period of time.
The latest companies announcing price lifting as from Jan. 1, 2017 include Sailun Jinyu Group, Xingyuan Group, Haohua Tire, Yuelong Group, Hubei Aulice Tyre, Kaixuan Rubber, and Guanqiu Rubber.
Combing with Aeolus Tire, Bridgestone, and Goodyear who had announced price hike earlier, Jan. 1 became the first date most tire producers started to raise prices.
This round of price hike also showed that the tide of price hike has extended from first-tier brands to second-tier even third- and fourth-tier brands. More small- and medium-sized tire producers have increased their prices.
Currently, domestic truck and bus tire produces have increased about 3% to 5%.
But fierce raw material price hike has continued. Rubber price once surged by 20% and carbon black price also increased some 10% in general.
Because of change in technical route, the output capacity of butadiene, the major material of compound rubber, cannot be resumed in the short term, the shortage will last quite long in the future, and some compound rubber producers are already confronting shortage.
It will lead to butadiene market price hike. Those with enough goods will take the lead in driving up rubber price.
As the prices of natural rubber, compound rubber, carbon black, and steel cord rise all the way up, tire price will certainly be boosted.
