The price increase of tires is unstoppable!
Runtong Rubber price increase of 5%
On February 19, 2025, Weihai Runtong Rubber Co., Ltd. issued a price adjustment notice, stating that due to the continuous increase in raw material prices, the manufacturing cost of inner tubes has increased significantly. The company decided to increase the price of inner tubes by 5% from February 19, 2025.
Distributor price increase of 3%
On February 19, 2025, Yantai Gongyuan Trading Co., Ltd. issued a price adjustment notice. Due to the continuous increase in the price of raw materials for inner tubes, various manufacturers have successively increased prices by 3% since mid-February. Since the inventory before the price increase has been used up, the company decided to increase the price of all specifications of inner tubes by 3% from March 1.
Guizhou Boda Changxing Technology Price Increase of 5%
On February 18, 2025, Guizhou Boda Changxing Technology Co., Ltd. issued a price adjustment letter. Due to the continuous increase in the prices of rubber-related raw materials, production auxiliary materials, etc. since the beginning of the year, the production cost of inner tubes has continued to increase.
In order to continue to provide stable and reliable products, the company decided to increase the company's inner tubes, engineering inner tubes, and agricultural inner tubes by 5% on the basis of the existing prices from February 18.
Chaoyang Huaxing Wanda price increase 3%
On February 17, 2025, Chaoyang Huaxing Wanda Tire Co., Ltd. issued an internal control document on price adjustment. The document stated that with the improvement of product quality, the cost increased significantly, and the cost of raw materials increased. In order to ensure the provision of stable products to customers, the company decided to increase the price of inner tubes by 3% on the original basis from February 17, 2025. And no advance payment is accepted.
Jinzhou Kaitao Tire Price Increase 3%
On February 17, 2025, Jinzhou Kaitao Tire Co., Ltd. issued a price adjustment notice. The company stated that due to the good start of raw material prices, the cost exceeded the sales price, which was completely beyond the company's tolerance.
In order to maintain the high quality and stable supply of products, the company decided to increase the ex-factory price of products by 3 points again from February 17, 2025, and no advance payment is accepted.
Chaoyang Junye Rubber
On February 17, 2025, Chaoyang Junye Rubber Products Co., Ltd. issued a price adjustment notice. Due to the rise in raw materials, in order to ensure that customers are provided with high-quality and stable products, the company decided to increase the price of butyl inner tubes by 3% on the basis of the original price. And no prepayment is accepted. Multiple price increase notices, the reason is directly pointed to the continuous rise in raw material prices.
Raw material prices continue to rise
Recently, the price of natural rubber has reached a high of 17,855 yuan, and this price level has attracted widespread attention in the market.
The first quarter of each year is the harvesting period in the main producing areas of natural rubber, which means that the supply is basically based on the reserves of the previous year. Due to the existence of the harvesting period, the supply of natural rubber will be significantly reduced in the first quarter. This phenomenon has led to a sharp rise in the price of natural rubber when supply exceeds demand.
Because of this reason, the next natural rubber price is difficult to predict. And the terminal tire market is also a booming scene.
Tires are in short supply and difficult to fill
At the beginning of 2025, many tire companies issued notices stating that orders are in short supply. Universal shares are fully booked: Recently, it has been reported that since the beginning of the year, Universal shares have received a continuous influx of domestic and foreign orders. At present, domestic semi-steel factories have been fully booked for orders in the first quarter, and are in 100% full-load production, with products in short supply.
The overseas market also performed well: in January, the daily output of semi-steel tires at the Thai base exceeded 30,000, and the daily output at the Cambodian base exceeded 20,000, both of which broke historical records, demonstrating the strong production strength of Universal Shares. It is worth mentioning that the order volume of the Cambodian base in January exceeded the actual maximum production capacity by 40%.
Dongyue tire orders got off to a good start: On February 5, 2025, the eighth day of the first lunar month, the new Dongyue Group ushered in a good start in the new year. The intelligent production line in its production workshop was running at full speed, and 26 large trucks loaded with Dongyue tires were dispatched to all parts of the country.
Jianda Tire signs an order of 3.5 million: Recently, the official platform of Jilin reported that in the production workshop of Jianda (Jilin) Tire Co., Ltd., the production line is running at full capacity, 24 hours a day, and the workers are busy shuttling back and forth, creating a prosperous production scene.
At present, Jianda Tire has signed 3.5 million orders, and the company is operating at full capacity. After the Spring Festival, the production capacity of the adjusted shifts will reach 5,000-6,000 tires per day. It is expected that 4 million tires will be produced in 2025, with an output value of 700 million yuan.
Products are in short supply, but what about profits?
The pressure on companies to reduce profits is reduced
Although domestic tire companies have booming orders, their profits are not optimistic. Even people in the tire industry know that it is difficult to survive by relying solely on the domestic tire market. Many large companies rely on overseas factories or exports to maintain their profits. Therefore, the survival pressure of major tire companies is also very high. Perhaps price increases are the only way out.
Price increase of tire products resolves the threat
A production staff of a tire company said that due to the increase in production costs, the average cost of tire production will increase by about 1 yuan per kilogram.
Take the 12R22.5 tire as an example. An ordinary tire weighs about 55 kilograms, so the raw material cost of a 12R22.5 tire has increased by 55 yuan. The higher the weight of the tire, the higher the raw material cost. The manufacturing cost of an all-steel tire has increased by about 10% on average.
Tire manufacturers urgently need to increase the selling price to offset the price increase of tire raw material costs and operating costs.
Domestic tire products used to win with price advantages. From the current situation, prices have fixed the development of my country's tire companies. Domestic tire companies do not want to raise prices, but they dare not raise prices.
Therefore, the current domestic tires break the barriers of product homogeneity and remove low-end production capacity to enable China's tire industry to develop healthily and stably in the long term. In such an environment, it is better to raise prices boldly. Even if it is to seek death, give yourself a pleasure, otherwise you really can't survive!
