These tire companies in July increased price increased collective
In the previous report, we learned that the current tire industry chain is in the excess capacity and product sales slow sales stage. But why these tire companies are still increasing prices?
1.Environmental storm’s coming According to the state to understand, the central environmental protection supervision work started with covering 23 provinces.
On May 11 this year, seven inspectors in the first batch of central environmental protection inspectors in seven provinces and municipalities have completed the first stage of the provincial level inspectors task and officially entered the next sink stage of the inspection.
Seven provinces and cities along the side to change by asking questions to 1278 people.
The environmental supervision make many small and medium enterprises not dare to start most of the time, which affects the tire production.
On July 7, more than 100 security rating for the "poor" chemical companies were all cut off for rectification in Shandong.
Many of which tire companies are included.
According to the relevant requirements, they can resume production to be accepted only when in accordance with the requirements .
- Price of Raw material at the end of 2016 Increases
According to the first quarter earnings released by many tire companies in 2017, we found that most listed tire business profits have declined or even caused a loss than profits in previous years.
Many of the listed tire companies can not stand this, let alone small and medium-sized tire companies. The pressure has made a lot of small and medium enterprises unable to breathe.
The reason is still due to the increasing trend of raw material prices by the end of 2016. There is floating larger of tire raw material rubber prices in a short-time. Huge financial pressure had to increase prices.
But in view of both the weak SME brand and low market recognition, SME can not be effectively promoted.
Negative debt tires are becoming more difficult to survive.
3.Hot summer season of tires
In view of China’s moving to the upgrade of global economy and consumer. Tires may have a good opportunity for development in the recent two years.
To catch up with the hot summer season, many cars consume a lot of tires.
I think that many tire manufacturers take this opportunity to put their own product prices up.