Jiaojia crazy rising tire industry experience "millennium cold"

For the tire industry, this winter is exceptionally cold.

Since the natural rubber prices have been rising all the way in the second half of last year, tire companies have not had a good time. January 19, 2011, the Shanghai Futures Exchange, the main contract offer Tianjiao 39980 yuan / ton, refreshed the historical height.

It is reported that rubber accounts for about 50% of the production cost of tires. Therefore, rubber prices are one of the most sensitive factors affecting tire manufacturers. The reporter learned from the tire branch of the China Rubber Industry Association that at present, the domestic tire industry has nearly 50% of the total loss. For domestic tire companies, this all the way to hit a record high prices of natural rubber prices, is tantamount to a "millennium cold."

Crazy rubber price On November 18, 2010, Hujiao 1105 contract hit a record high of 38,920 yuan at the time, compared with the end of 2008, Hujiao's bottom price of 8,650 yuan rose 3.5 times. On January 19, 2011, natural rubber hit another record high at 39,980 yuan per ton.

Natural rubber has always been the focus of capital speculation. Why is it crazy now?

The reporter learned that at present, the main natural rubber production areas in China have entered the stop period. According to the latest stock weekly report on the Shanghai Futures Exchange, inventory is only 68,675 tons, a decrease of 175 tons year-on-year. The inventory of major natural rubber producing areas such as Yunnan has been basically consumed, and the phenomenon that the dominant stocks in the market are fully in the early stage of stoppage is also rare.

In addition, due to heavy rainfall in major rubber-producing countries such as Thailand, Indonesia, and Malaysia, the supply decreased. Since October 2010, spot rubber prices have been rising all the way, constantly refreshing historical highs. At present, China's tire companies consume 70% of natural rubber raw materials. The continuous increase in the consumption of the price did not affect its purchasing activities. On the contrary, based on the expected price increase of tires, dealers scrambled to increase inventory, which was a 50% increase over 2010. Limited natural rubber resources are being robbed by demanders, which further boosts prices. Not long ago, Bridgestone bought Thailand's RSS3 grade rubber for February shipments, and the CIF price per ton was as high as $5,300.

A car tire supplier told reporters that demand is also an important force to boost Jiaojia crazy. At present, the global automotive industry is recovering, and the growth rate of tire production cannot catch up with the demand of enterprises. 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%.

At the same time, some people pointed out that the fluctuation of natural rubber prices at present is extremely abnormal, and it is the hype of some interest groups at home and abroad. Shen Jinrong, chairman of Hangzhou Zhongce Rubber Co., Ltd., told the China Economic Times that “according to common sense, January to February each year is the traditional low season for natural rubber. In addition to this year, Thailand, Malaysia and other rubber-producing countries are enjoying a good weather, why? The price rise will continue to rise so sharply because of the speculation of capital. At present, international capital speculators are still betting that prices will continue to rise."

He compared the Chinese natural rubber futures market to “casinos.” He pointed out that the current day for natural rubber futures positions is the largest, close to 200,000 hands, the day with the highest volume of transactions is close to 2 million hands, and 1.5 million hands are the norm. One-day trading The quantity is more than China's consumption for 2 years.

Stopping production and increasing prices to survive The rise in natural rubber prices has driven up the price of synthetic rubber. The cost pressure on tire companies has increased dramatically. The tire industry is already in a state of mourning. A number of tire companies have to resort to stop production and increase tire prices and other means to ease the cost increase caused by raw material prices.

The China Economic Times reporter learned that at present seven major tire manufacturers in China are preparing to use the Spring Festival holiday and intend to continue holiday time. About half a month after the Spring Festival holiday is suspended, to reduce the use of high-priced raw materials to produce tires.

Prior to this, a number of international tire giants launched a tire price increase plan announced that it will be implemented from January 1, 2011. The price increase this time involves almost all types of tires, mostly in the range of 5% to 10%.

Eduardo Minardi, Chairman, CEO, and President of Bridgestone Americas Tire Division, said at the press conference: “We are facing a series of market pressures including rising energy, transportation and raw material costs. , so we must increase the price of the product."

This tide of tire inflation has spread to 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%.

A tire dealer told this reporter that according to the current situation, the price of economical car tires in the market has increased by 50 yuan each, and the price of truck tires has increased by 150 yuan each. Zhong Shi, an expert in the automotive industry, pointed out that if the price of natural rubber is allowed to continue to rise to increase the cost of tires, it will inevitably affect the increase in the cost of the vehicle manufacturer, which may affect consumers.

Nevertheless, these measures taken by tire companies are still unable to alleviate the cost increase caused by raw material price increases. The reporter learned from the Tire Branch of the China Rubber Industry Association that the profits of tire companies in January-November 2010 decreased by 22% year-on-year, with a loss of 26%, and the tire industry’s total loss was nearly 50%.

On January 13, the China Rubber Association held an emergency tire economic analysis meeting in Beijing and was ready to request support from the relevant state agencies. Chen Yaofeng, a representative of Shuangqin Group Co., Ltd., said that the cost of tires in the industry has risen by more than 50%, but the price increase rate has not exceeded 20% last year. Tire companies cannot quickly pass through the pressure of rising costs, and the companies “worse”.

At the meeting, including Hangzhou Zhongce Rubber Co., Ltd., Aeolus Tyre Co., Ltd., Shuangqin Group Co., Ltd., Guizhou Tire Co., Ltd., Triangle Group Co., Ltd., Guangzhou Huanan Rubber Tire Co., Ltd., Shandong Linglong Tire Co., Ltd., etc. Seven tire companies agreed that the most direct and effective way to solve the current difficulties in the tire industry and stabilize the price of natural rubber is to put the state reserve glue into the market as soon as possible, and at the same time eliminate import tariffs on natural rubber as soon as possible.

Shen Jinrong stated that "in April last year, the country put 100,000 tons of State Reserve rubber, which stabilized the price of natural rubber."