Tire price goes up further in Feb. in China

A notice on price increase has recently been spread widely in the tire industry, on which Shandong Haohua Tire Company announced to raise price for steel & nylon tire by 15 percent from Feb. 1 and another 15 percent from March 1.

The tire maker lifted price for all steel tire by 5 percent from Jan. 20.

Actually, in the final quarter of 2016, Haohua lifted price for all steel tire for a few times, while it raised price for steel & nylon tire only once, by 6 percent, due to increasing prices of raw materials.

Natural rubber price has almost doubled over the past year. Carbon black price has also grown nearly 100 percent during the same period. Meanwhile, steel cord price has also been increasing.

Besides Shandong Haohua, quite a few other tire makers in China have also raised tire price by up to 8 percent for February, including GITI China, Coopertires China, and Shandong Haoyu.

An unnamed senior director from a tire company told tireworld.com.cn that the raw material price has been growing much more sharply than tire price. “Quite many small and midsize tire makers have suspended production. If we want to achieve the profitability of June last year, we have to raise tire price by 50 percent at least.”