Recently, several domestic tire companies have issued price increase letters, announcing a collective increase in tire product prices in early December. Domestic listed tire companies such as Sailun Tire, Guizhou Tire, and Senqilin have generally raised prices by 3% to 5%. Many companies have not issued price increase notices for the first time this year, but reporters have visited offline stores and found that the prices of sedan tires have not changed, and some models have actually lowered prices.
Welcome another wave of price increases at the end of the year
After the collective price increase by tire companies in November, several tire companies have once again issued notices to raise product prices in December.
On November 30th, Sailun Tire issued a price increase letter stating that starting from December 1st, the company's product prices will be raised again by 3% to 5%. On the same day, Senqilin issued a price increase notice, stating that due to the recent increase in raw material costs to varying degrees, production costs have continued to rise. Starting from December 1, 2020, the company will adjust the prices of its entire product line. The price increase letter from Guizhou Tire shows that the product was raised twice in December, with the first price increase of 1% to 2% and the second price increase of 2%.
This collective price increase is not the first time this year. Since October, more than 40 domestic tire companies have issued price increase notices. Domestic tire manufacturers such as Zhongce, Fengshen, Linglong, Zhengxin, and Shuangxing have all raised prices. Foreign tire companies such as Hankook and Jiatong have also followed suit, with a cumulative price increase of over 5%.
In addition to listed tire companies, local tire companies in Qingdao have also shown a trend of price increases. The reporter learned from multiple tire companies that there is an intention to raise prices for tire products, with the increase concentrated at 3% -5%, and some companies experiencing a 10% increase.
The rise in prices of raw materials such as rubber and carbon black remains the main reason for the price increase
The increase in product prices this time is still due to the rise in raw material prices. "The reporter called Qingdao tire production enterprises such as Sailun Group, and the relevant person in charge said that the main reason for this round of price increases is still the increase in manufacturing costs due to the impact of rising prices of natural rubber, carbon black and other tire raw materials.
