Poor demand Domestic tire market reproduces rising prices

The economic slowdown at home and abroad, commercial vehicle sales continued to decline, coupled with the situation of the decline in raw rubber, resulting in domestic car passenger car tire manufacturers have been continuing to cut prices since March 2013. Is the price increase really true? “The tires are going up!” At the 11th China International Tire Expo 2013, the reporter overheard the news.

"There are several tire companies intending to raise prices," said a tire company sales staff.

If it is in 2007 or 2008, tire prices may not sound new at all, but in 2013, it seems a little strange. The economic slowdown at home and abroad, commercial vehicle sales continued to decline, coupled with the situation of the decline in raw rubber, resulting in domestic car passenger car tire manufacturers have been continuing to cut prices since March 2013.

Is the price increase really true?

“It is a price increase. The prices of Hengfeng and Double Star tires have risen by two or three points. The others are still unclear.” Qiao Yong, a salesman at Beijing Jiuneng Nanda Trading Co., Ltd., told reporters: “We hope to increase prices, but Demand is still not enough."

Subsequently, the reporter confirmed the news of price increases from the relevant person in charge of Xingyuan Tire and Luohe Tire.

Qiao Yong said that the situation in 2013 was worse than that in 2012. “The economy is in a sluggish state, and mines do not work. The transportation team also stops and stops, so the tyres are not wasted and we have no business.”

At the same time, the above-mentioned sources expressed their concern about the stability of the price increase: “After all, the downstream demand has not improved, and the single individual company’s price increases cannot explain the problem.”

Since the demand is poor, why do we have to increase prices? In response, Liu Zongjun, manager of Luohe Tire Foreign Trade Co., gave reasons. The situation in Syria is tense, causing crude oil and rubber futures prices to rise "stressed." Tire manufacturers have great cost pressures. "We are also considering price increases."

The company that “consider” the price increase like the Luohe Tire is not one. When the reporter contacted Xiong Yunjun, head of the marketing department of Beijing Tire Tire Co., Ltd., he also expressed similar views: “I have this idea, but I have not dared to move yet. Have to wait and see again."

In the interview, an industry source stated that although the “price increase” of tires is beginning to show up, the trend is stable and it needs to wait for the market to test it.

It is understood that the tires that are subject to price increase or price increase are mostly “three bags” tires.

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