Natural rubber price may decline 10% to 15% in 2012, which would raise tire industry’s gross profit from current’s 11% to 15-20%, Dongxing Securities predicted.
Usually, natural rubber price takes 35-45% of cost in tire produce. In that case, if natural rubber price decreases 1%, gross profit of tire would increase 0.3 to 0.5 percentage point.
The whole industry will perform better in 2012, an analyst in Dongxing Securities said.
