The tire industry boom lasted at least ten years


In November, a group of tire  manufacturer price increases, prices rise.

At the same time, the price of rubber is way down, and are likely to continue to maintain low.

This one up one down, tire manufacturer has undoubtedly the most comfortable period in days.


Production costs rose slightly

So far this year 9 months, dozens of tire manufacturers, the price increase of tire products.

These companies are invariably said, tire prices because raw material prices caused by rising production costs.

From the tire cost structure, rubber, carbon black, steel cord were accounted for in the cost of raw materials 45%-50%, 10%, 16%.

Among them, the price of rubber high cut, reduce the enterprise cost pressure.

Carbon black by the environmental supervision, and the influence of international oil prices, coal prices and other factors, a high price.

Continuous high steel prices, but also improve the steel cord material cost.

Comprehensive accounting, accounting for the cost of raw rubber prices fell first, can rise to offset the carbon black, steel cord, curtain cloth and other raw material prices.

Therefore, the cost of raw tire manufacturing enterprises do not rise significantly, they can afford.

Some experts say the main reason the price tide formed, is worried about the tire enterprises manufacturers of raw materials affected by winter inspectors aggravated, appear so as to further enhance the price limit production shutdown.


Rubber prices rebound low probability


It is worth noting that the tire manufacturing enterprises to improve profitability, and rubber prices have a great relationship.

This year, the whole rubber market is already in oversupply.

The growth of life of rubber tree, up to 60 years, in the absence of natural disasters under the condition that the rubber oversupply problems difficult to solve within a short period of time.

Rubber prices will remain low, this will greatly reduce the production cost of enterprises, and to improve the business performance of enterprises.


The automobile industry needs stability


As of the end of 2017, China cars up to 2.17 million units, the industry generally is expected to 2019 years, Chinese cars will become the first in the world.

Although the new production of negative growth, but the market to replace the huge volume, can maintain the tire industry continue to grow.

In addition, at present, Chinese has become the largest new energy automobile production and consumption country.

The rapid development of new energy vehicles, bring new tire replacement demand.

Therefore, China tire business, do not worry about the price increase will have a negative impact on product sales.

To sum up, industry insiders believe that, at present, Chinese tire industry is still in the business cycle, at least the next ten years will not decline.