Imported tires have always been at a relatively high price level, after all, China's taxes are not low, but the quality is indeed solid, and I can experience it myself. There is still a lot of development space for domestically produced tires, and China's rubber reserves are relatively abundant. Lack of unique technology.

The trend is hard to say because we still need to pay attention to the entire development trend of the rubber industry. After all, natural rubber is not inexhaustible.

And with the rise in prices of other related products, tires cannot always maintain a constant price.

According to the statistics of the Tire Branch of the China Rubber Industry Association, the tire production in China from 2006 to 2015 is as follows:

Tire production in China from 2006 to 2015 (unit: 100 million tires)

According to the statistics of the Tire Branch of China Rubber Industry Association, the industrial output value, sales revenue, and export delivery value of key tire enterprises in China have maintained a fast growth rate. The specific situation is as follows:

Affected by the rise in rubber prices, tire prices generally increase by about 5% annually.

Based on market feedback since March, Michelin's current single tire growth rate is around 20-40 yuan, with a growth rate of around 5%.

It was learned from tire terminal sellers that both imported and domestically produced tires have increased in price, both in the tens of yuan range, but the majority of the increase did not exceed 5%. The reason for the price increase explained by the seller is that the prices of raw materials are rising.

When discussing the surging price surge, an insider in the tire industry pointed out that the main reason is still due to raw materials. Besides the sharp increase in prices, there are other reasons for raw materials. Among them, natural rubber is the main raw material for tire production, and the proportion of different products varies, with a higher proportion on truck tires. In 2016, the extreme cold and hot phenomena of El Ni ñ o and La Ni ñ a occurred alternately, resulting in a shortage of natural rubber production. Its price rose from over 9000 yuan/ton in early 2016 to 20000 yuan/ton at the end of 2016, and now the price per ton is still hovering between 18000 and 19500 yuan. The main materials used in tire production, including cord fabric, carbon black, and steel wire, have all seen significant price increases. Like curtain fabric, the increase is nearly 50%, and the carbon black increase is also up to 190%. The various drugs required in tire raw materials have already been affected in the second and third quarters of 2016, mainly due to changes in the supply and demand relationship. Due to the fact that before last year's G20 summit, the country had already begun to address the problems caused by high energy consumption and pollution. From an environmental perspective, the entry threshold and production costs for domestic chemical manufacturers have been raised, resulting in changes in the supply chain of some tire companies in the field of pharmaceutical raw materials.

In this wave of price increases, domestic tire manufacturers have generally risen the most aggressively, while multinational enterprises have relatively little increase in prices and their pace has not kept up so fast. A tire industry employee revealed that this is mainly due to the different procurement methods of the two. Many domestic tire factories adopt a "buy as you go" purchasing method, which is greatly affected by the real-time market changes in raw material prices. Multinational tire companies generally adopt futures based procurement, with a quarterly or semi annual purchasing cycle. Therefore, when there is a change in raw material prices, their impact will lag for several months.

It is understood that the price of rubber has been soaring since last year, with some natural rubber experiencing a 100% increase. In addition, in addition to the rising prices of important components such as rubber, the prices of other related raw materials (such as curtains, carbon black, etc.) are also correspondingly rising.

Economic analysts point out that in recent years, China's economy has been developing rapidly, driving an increase in demand for many natural and processed products. In the case of insufficient supply and demand, an increase will bring a chain reaction. Moreover, the high global oil prices have led to a continuous rise in synthetic rubber, while also driving up the price of natural rubber.