Rubber prices climbed more than 30%

The price of natural rubber has risen steadily, and the production costs of downstream companies have continued to increase. This has caused tire companies that are in the “squeezing down” environment to continue to reduce their production. However, due to cost support, tires at home and abroad have once again increased their prices. Tire enterprises still performed well in their main business revenues last year, but their profitability was raging.

Swell in costs escalated monthly. China Rubber Industry Association Tire Branch announced a set of data on its website yesterday, saying that “Since the fourth quarter of last year, due to the high raw material prices of natural rubber and other factors, production costs have skyrocketed and tire companies have begun to plan. Adjust tire production."

According to the survey conducted by the association, 45 companies, including Hangzhou Zhongce, Aeolus and Shuangqin, had a 2.5% decline in output growth in October 2010 compared to September, and a 3.1% decrease in November compared with October. It fell by 2.2% in November. At the same time, a comparative analysis was conducted on the production of seven companies in January this year. In January, the output decreased by 4.84% from December of last year.

The association said that it is estimated that in February due to the Spring Festival holiday and other factors, the decline in output is even greater. At the same time, the association also conducted investigations on the opportunities for 20 domestic and foreign-funded enterprises to use the Spring Festival maintenance equipment and extend the length of the holiday. Three out of 3-4 days of extended rest, and 10 out of 5-7 days. 8- There are 6 in 10 days and 1 in 21 days of rest. From the analysis of the situation, most companies have 3-5 days more rest this year than in previous years. Several companies basically did not leave for the Spring Festival in previous years, and they also rested for 5-7 days this year.

The association further emphasized that the price of natural rubber has deviated greatly from its own value. Tire companies cannot absorb the pressure of rising costs, prompting many companies to adjust their production plans, reduce the amount of natural rubber, and balance factory inventory tires and dealer tire inventory. Reasonable inventory. Due to many uncertainties such as artificial speculation, natural rubber prices are likely to remain at high levels. Therefore, the tire industry continued to plead for the relevant national departments to cancel the import tariffs on natural rubber and place the State Reserve rubber as soon as possible to ensure that tire companies to maintain normal production and operation.

Domestic and foreign market prices increase by more than 5% According to reports, since 2011, global multinational tire companies and domestic tire companies have basically formulated tire price increase programs, mostly in the range of 5%-10%.

German Continental Tire Corp. once again increased the price of commercial vehicle tires in Europe and other regions from 7% on February 1. Michelin Tire Corp. has again raised the price of passenger car and light truck tires in North America and other regions by 8%, engineering tires and industrial tires since February 1. The price increase was 7%; Titus Tire Company increased its price again by about 8% from January 1st; Sumitomo Tire Co., Ltd. has again started operations in North America, Europe, South America, Africa, Oceania, Asia and the Middle East from January 1. Raise the price by 5%-10%; Yokohama Tire Company will once again raise the price of commercial tires in the United States and other countries and regions by 6% from January 1st, and increase the price of construction tires by 5%; Pirelli Tire Co., Ltd. will start Europe on March 1st. The prices in Middle East, Africa, Africa and Asia have increased again by about 7%; Bridgestone Tire Company has raised the prices of trucks, passenger cars, agricultural tires and engineering tires by 7% in the United States, Japan and other countries and regions since March 1. about.

Global multinational tire companies have established tire companies (factories) in China. Since the beginning of 2011, foreign companies such as Michelin, Bridgestone, Cooper, Hankook, Kumho, Yokohama, Sumitomo and other tire companies have once again announced a price increase of 5%-8% in China's tire matching and replacement market. Domestically-funded companies such as Shuangqian, Triangle, Hangao, Guilun, Fengshen, Linglong, and South China Tire Company once again raised the prices of domestic tires by 5%-8% and exported tires by about 6%.

Tire-losing companies have fallen by more than 30% in tire volume, and major domestic tire companies’ revenue last year still looks good.

According to a report by the China Business News reporter on the website of the China Rubber Industry Association's “Top 100 (Tire) Top 100 Companies”, Hangzhou Zhongce topped the list of the main income of 24.466 billion yuan, and in 2009 the company’s main business The business income is about 16 billion yuan, and the main business income has increased by about 50%. The three listed companies in the tire companies also performed well. The double-money shares had a total revenue of 9.096 billion yuan, while in 2009 the company’s operating revenue was only about 7.2 billion yuan. Fengshen’s main revenue is RMB 8.1 billion, which was approximately RMB 5.6 billion in 2009; Yufeng’s main revenue is RMB 6.1 billion, and in 2009 it was RMB 4.7 billion.

In spite of the high cost of suffering, the performance forecast released by Shuangqin (600623) shows that its performance last year is expected to increase by about 50% from 2009. However, the company said that the growth in its performance was mainly “a total of 6.17 million steel tires sold throughout the year. Compared with the same period of last year, the sales of all-steel tires increased by approximately 27%, which diluted the fixed costs and offset the impact of some raw material price increases. In 2010, the company transferred a 28.5% stake in Shanghai Michelin Huali Tire Co., Ltd. and a 79.75% stake in Shanghai Qiang Group Rubber Co., Ltd. for a total of 181 million yuan.

However, Fengshen Co., Ltd. (600469) issued a pre-reduction announcement saying that "the cost of the company's main raw materials for production, especially natural rubber, has increased substantially over the same period of last year, and the company's net profit will be reduced by about 50%." Tire Tire (000589) also expects 2010 net profit to decline by 50%-70% over the same period of the previous year.

However, insider of China Rubber Industry Association tire branch said that natural rubber prices remain high, last year, at least 30% to 40% of tire companies have suffered losses, and the loss is still expanding.