Tire industry revenue soared sharply

The substantial increase in the price of synthetic rubber has seriously affected the operating efficiency of tire companies. Statistics released by the China Rubber Industry Association Tire Branch on August 23 showed that from January to July, 44 member companies had a total profit reduction of 14.2% year-on-year, when sales revenue increased by 22.4% year-on-year. The overall profit margin of the industry has dropped to 2%.

The prices of synthetic rubber such as styrene butadiene rubber and butadiene butadiene rubber, which are the main raw materials for tire production, have risen rapidly. The prices of the synthetic rubber have approached or surpassed that of natural rubber. According to a survey of some major tire manufacturers, the prices of styrene-butadiene rubber and butadiene-butadiene rubber rose sharply from January to July, especially in July. Among them, July purchase price of styrene-butadiene rubber 1502 (non-oil grade) was 32,500 yuan (ton price, the same below), styrene-butadiene rubber 1712 (oil-filled grade) was 28,900 yuan, and butadiene rubber 9000 was 33,400 yuan. Compared with the same period of last year, the price of styrene butadiene rubber rose nearly 1 times, and the price of butadiene rubber rose by about 70%. Since August, the price of synthetic rubber has continued to rise, and butadiene rubber has risen to 35,000 yuan.

After experiencing the price hike of natural rubber at the beginning of the year, tire companies are now facing enormous pressure on the rise in synthetic rubber prices, which poses a new threat to the normal production and operation of tire companies. According to a large tire company, from January to July, the company's average purchase price of synthetic rubber increased 44.6% over the same period of last year, and the cost increased by 723 million yuan. Among them, the purchase price in July increased by 73.7% year-on-year, and the cost increased by 160 million yuan. It is estimated that the annual purchase cost of synthetic rubber will increase by 1.267 billion yuan. Another large tire company also reported that the purchase prices for styrene butadiene rubber 1502, styrene butadiene rubber 1712 and butadiene rubber 9000 from January to July were 68.3%, 63.9% and 52.4% higher than the same period of last year respectively. It is expected that the annual cost of synthetic rubber will increase. Branch 518 million yuan.

According to industry analysts, the price of synthetic rubber has risen sharply. In addition to the recent shortage of raw materials for butadiene, price monopoly and artificial speculation are also important reasons. In the past month, the price of raw material butadiene has dropped, but the price of synthetic rubber has not been able to fall back.

To this end, tire companies hope that the relevant state departments to take effective measures as soon as possible to suppress the rapid rise in the price of synthetic rubber, making it fall back to normal levels, in order to ensure the normal production and operation of tire companies.