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The tire price increase trend is coming

The tire price increase trend is coming

2020-09-21

The tire price increase trend is coming, is the stock hoarding still far away? ---Tire Commerce


When we were still immersed in the frenzied testing of the natural rubber futures price at the edge of 10,000, we did not know that the natural rubber futures price was surging in a flash, and it jumped directly to more than 12,000. It reached 12,700 at the highest time last Friday, reaching the high Level of last year.  While the prices of raw materials have risen, many tire companies have issued price increases notices.

Affected by raw materials, Kenda, KAPSEN, TRIANGLE, and  HILO have all expressed their plans to increase prices in the near future. Judging from the situation this year, now is the best time to stock up.


Raw material prices have risen sharply

Recently, the prices of the three major raw materials of tires have all increased. Natural rubber increased by 8% at the end of the second quarter. After entering the third quarter, it has also increased steadily. The international carbon black machine head Cabot announced in July that the price of white carbon black has increased by 10 %, the price of commonly used black carbon black has skyrocketed by 30%; rebar has risen by 20% in 3 months.


The price increase trend is coming, is the stock hoarding still far away?

Every dealer must ensure his own reasonable inventory. A dealer in Beijing said: I have warehouses in Beijing, Tangshan, and Tianjin, and every year, 100-200 million yuan is pressed here. My inventory may maintain sales for three months. A reasonable inventory can help us increase tire sales. Inventory is inevitable, so reasonable purchase and shipment is a required course for a qualified dealer.


Does the collective price increase of tire companies indicate the advent of a new wave of price increases? This is a big deal in the dealer tire store circle, and many dealers have chosen to stock up. Many dealers said that although many tire manufacturers have not announced price increases, they have canceled many preferential activities. Originally, tire dealers and tire shops can earn a certain amount of income with rebates. Now that there are no discounts, hurry up inventory. Restocking is the main theme.



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