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Global Storm Struck, Tire Factory Limited Production 40%
Release time:2018-03-20 09:34:40| Viewed:

 Recently, there will be a heavy pollution process in Shandong Province, China, involving companies including all Dongying industrial companies, among which blue warnings will limit production by 7%, yellow warning cement companies will stop production, other companies will limit production by 20%, orange warning cement companies will stop production, and other companies Production is limited to 30%, red alert petrochemical, chemical companies limit production 40%, other companies stop production.

    At the same time, companies involved include: petrochemical, chemical, rubber tires, non-ferrous metal smelting and other atmospheric pollutant emission units to implement limited production, limit emissions and other measures to reduce emissions of atmospheric pollutants by about 25%. At present, some tire dealers have released news: Since March 12th, all tire industries have restricted production by 40%! Some tire companies even limit production by 60%! Some more directly suspend production for rectification! The factory is out of stock and can't get the goods with luck.


    As we all know, since the second half of 2017, due to the new environmental protection policy, the prices of tire raw materials have risen significantly, resulting in higher tire production costs. Due to the increase in prices of upstream materials, production and operating costs have increased, in order to guarantee the tire industry. The stable development continues to provide consumers with more valuable products and services. Based on the actual situation in the current market, after careful study and discussion, most tire factories decided to increase tire prices from April 2018 with a 3% adjustment rate. The specific April price list will prevail.


    Not surprisingly, this year's tire production costs will continue to rise. Recently, Japan’s Mitsubishi Chemical, one of the world’s major carbon black producers, announced that it will increase carbon black prices on April 1 by up to US$400/t. According to Indian media reports, carbon black is currently in serious shortage in India, and a large number of small and medium-sized non-tire rubber companies are on the verge of closure. Driven by the country's large-scale tire manufacturers, India's import tariffs on tires have been raised from 10% to 15%, and domestic demand has thus increased. Supply shortages have intensified.


    In addition to domestic, tire prices in foreign markets have also risen. Japanese tire manufacturer Yukho Ma decided to increase the price of construction machinery tires from April 1. The German horse brand has also issued the April price increase notice. Swedish tire manufacturer Trelleborg also officially announced that due to the impact of rising costs, the European market began to raise prices in April. At the same time, product prices have begun to increase in other parts of the world. North America's price increase may be as high as 10%, and the rest of the world will also increase by as much as 5%. Do not ask whether the recent tires will increase prices, please first ask if there is any goods now? How long will this price increase last? When will the tire price explode in place and suddenly fall? I am afraid only the market knows for itself.

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