The price increase of tire raw materials continues to increase

Recently, there has been a sustained increase in the prices of tire raw materials, drawing significant attention within and outside the industry. The strong demand has led to an upward trend in raw material prices, a phenomenon observed not only in the domestic market but also globally. Raw materials such as butadiene, natural rubber, and carbon black have experienced price hikes, directly impacting tire manufacturing costs and prompting tire companies to adjust prices to cope with cost pressures.

With the tire market continuing to prosper and orders increasing, demand for raw materials has also risen, resulting in rapid price hikes. The notable surge in butadiene prices, exceeding 9% and reaching as high as 13.8% in some regions, has garnered particular attention, hitting the highest levels in several years. Prices of other raw materials like natural rubber have followed a similar trend, with the market's supply-demand imbalance accelerating the pace of price increases.

Against this market backdrop, tire companies have been compelled to implement a new round of price adjustments to mitigate the cost pressures stemming from rising raw material prices. This price transmission is a normal market mechanism, albeit posing challenges for both consumers and businesses.

It is essential to closely monitor whether the increases in raw material prices will affect the overall competitiveness of the tire industry and consumers' purchasing power. Additionally, tire companies need to make corresponding adjustments in cost management and product pricing to maintain profitability and market competitiveness.