High operating price of raw materials tire companies have little room for profit

Due to factors such as rising raw material prices, the profitability of domestic tire companies is not optimistic. According to the relevant statistics of China National Rubber Industry Association Tire Branch, in the first seven months of 2011, 44 member companies achieved a total profit reduction of 14.2% year-on-year while sales revenue increased by 22.4% year-on-year.

Chang Yingzhi, a researcher in the chemical industry of China Investment Advisors, pointed out that natural rubber accounts for a relatively large proportion of tire production costs. Currently, due to tight market supply, natural rubber prices are running at a high level, which greatly increases the cost pressure of tire manufacturers. At present, the sales of domestic tires are not optimistic. On the one hand, the increase in the production and sales volume of domestic cars is continuously shrinking. On the other hand, due to the impact of trade friction, the export situation of domestically produced tires is not good. Therefore, the tire manufacturers in China are now There is little room for profit.

Chang Zhizhi pointed out that in recent years, with the rapid development of the tire industry, the demand for natural rubber has grown rapidly. Since the second half of last year, due to climatic factors, the production of natural rubber in major natural rubber producing areas such as Yunnan and Hainan has been growing. It has dropped sharply, and natural rubber production in countries such as Thailand and India has also been reduced compared to previous years due to rainy weather. Therefore, the domestic market for natural rubber is relatively tight, which has contributed to the rise in domestic natural rubber prices.

According to relevant data, in recent years, with the rapid development of the automobile industry, the development of the tire industry in China has been very rapid. From January to July 2011, China’s tire industry produced 46.94 million tires, an increase of 5.2% year-on-year. Among them, the production of radial tires was approximately 22.221 million, an increase of 6.2% year-on-year; the production of skew tires was approximately 223.6 million, an increase of 3.7% year-on-year; and the output of motorcycle tires was approximately 6.86 million, an increase of 31.6% over the same period.

Natural rubber is the main raw material for tire production. With the rapid development of the tire industry, its demand has also increased significantly. According to relevant statistics, in 2010, the consumption of natural rubber in China has exceeded 3.5 million tons, accounting for more than one-third of the total global natural rubber consumption; it is expected that by 2015, the demand for natural rubber in China may reach 480 More than 10,000 tons.

However, due to the limitation of geographical conditions, the output of natural rubber in China did not increase significantly with the increase in demand. In 2010, China's natural rubber production was only 687,000 tons, and the foreign dependence has exceeded 80%. The "2011-2015 China Rubber Industry Investment Analysis and Prospect Forecast Report" released by the China Investment Advisor shows that due to the limited growth of domestic natural rubber production, China depends on a large amount of imported natural rubber each year to meet the needs of the domestic market. Higher degree.