Xingyuan releases information of raw material suppliers

Xingyuan Group, a tire maker based in Shandong province, has released its suppliers of major raw materials including natural rubber, compound rubber, carbon black and steel cord.

Xingyuan relied on import for 90 percent of its natural rubber demand. The main suppliers included Qingdao Unique Technology and Trade Limited and Awesome International Limited.

Some 72 percent its compound rubber demand were satisfied by domestic suppliers, mainly China National Petroleum Corporation and PetroChina.

Xingyuan bought carbon black all from domestic market. The main suppliers included Best Chemical, Jiangxi Black Cat Carbon Black, Boao Carbon Black and Cabot Corporation (China).

The domestic market also supplied all the steel cord for Xingyuan, mainly by Xingda International (Shanghai), Bekaert (Shanghai) and Henan Hengxing Technology Limited.

Raw material costs account for about 80 percent of total production costs of all-steel tires. Among that, natural rubber and compound rubber takes up about 53.39 percent, carbon black and steel cord about 24.26 percent and other chemical adjuvant about 9.6 percent.

Xingyuan and its natural rubber suppliers mainly set the prices referring to the futures market.

The prices Xingyuan paid for raw materials were generally lower than the present market prices, the company said.