Global tire market rises

As soon as the new year arrived, the world tire market set off a wave of price increases. Most of the world's major tire companies have introduced tire price increases. The price increase covers almost all types of tires, and the range is mostly 5% to 10%.

Tire price rises up. A continental tire company raised the price of medium-sized truck tires for the American brand, general and Ameristeel brand in the Americas from January 1, 2011, up to 8%, while maximizing the prices of tires for passenger cars and light trucks. 6.5%. From February 1, the mainland will also increase the price of commercial vehicle tires in the European region by 7%.

Michelin increased its North American passenger car and light truck tire prices again on February 1 this year after increasing the prices of truck replacement tires in North America from December 1 last year. Tire Business Review quoted Michelin's news that the average price increase for Michelin truck tires will reach 8%, and the price increase for passenger cars and light truck tires will vary depending on the product. Michelin also announced that it will increase the prices of North American engineering and industrial tires by 7%. It will be implemented in the United States, Canada, and Mexico from February 1.

Titan Tire Co., Ltd. raised the price of Goodyear brand agricultural tires produced by Titan Tire and Royal Tanner from January 1st, and the maximum increase will reach 8%.

Sumitomo Tire Co., Ltd. will increase passenger, light truck, load, and motorcycle tire prices by 5% to 10% from January 1, including Asia, the Middle East, North America, Europe, South America, Africa, and Oceania.

Yokohama Tire Co., Ltd. also raised the prices of light and medium commercial vehicle tires and engineering tires sold in the United States on January 1. The price of commercial vehicle tires will increase by 6%, while that of construction tires will increase by 5%.

Pirelli, Italy, announced that it will increase tire prices in Europe, the Middle East, Africa and Asia. Prices of passenger cars, light trucks, SUVs and motorcycle tires rose by 3%, and prices of trucks and industrial tires rose by 7%. They went into effect on March 1.

Bridgestone first announced the increase in tire prices in the United States in mid-December last year, the highest increase of 8%, the price increase involves the company's tires for trucks, buses, agricultural vehicles and construction machinery; later announced that Japan will replace The price of truck tires and bus tires in the tire market increased by 7%, and the price increase will take effect on March 1 this year.

Rising tides of price increase to China The world's tire giants have wholly owned or joint venture factories in China, and tire inflation is also spreading in China. Bridgestone Corporation raised the price of tires sold in China in mid-December last year by 4%, and plans to carry out the second round of price increase in February this year. Continental Tire announced that it has increased the price of commercial vehicle tires replacing tires in China since 2011, with an average increase of 5%. The reporter learned from the Tire sellers in Guilin that the international brand tires have been raised in different degrees, ranging from 4% to 10%, of which Michelin tires of different specifications have risen by 5% to 8%, and the price of horse tires has risen by 5%. Hankook tires price increase 6%, Cooper tires price increase 7%, Kumho tires, Nexans tires, Yokohama tires are 8%. The price of the most mainstream economical car tires in the market will increase by about 50 yuan each, and the price of truck tires will increase by about 150 yuan each.

The demand for raw materials to drive the world's tire prices is mainly driven by the substantial increase in natural rubber prices. After the price of natural rubber in the world hit a record high in September last year, it broke through 4000 USD/ton and 5000 USD/ton. The cost of natural rubber in tires has risen from about 40% to more than 50%. According to the current purchase of natural rubber tire prices, if you do not increase prices, the loss will be a foregone conclusion, companies will face the risk of closure. A mainland Chinese spokesperson said: “Since natural rubber and other raw materials and energy costs continue to rise, tire prices can only rise.” Bridgestone Americas Tire Branch Chairman, CEO and President Eduardo Minardi (Eduardo Minardi) in The press conference stated: "We are facing a series of market pressures, including rising energy, transportation and raw material costs, so we must increase product prices."

Another reason for the price increase is strong demand. The economic recovery in the United States and other countries was better than expected. Ford and other auto giants emerged from the predicament, and demand for automobiles and tires grew rapidly. China's auto industry is also developing rapidly. According to statistics released by the China Association of Automobile Manufacturers, China’s autos broke through 18 million vehicles in 2010, an increase of 34% year-on-year, while total tire production increased by 22%. The increase in the production of tires is lower than the increase in automobile production, which provides the possibility of tire prices.