Negative profits hit, China's tire industry suffered a "life and death disaster"
the soaring natural rubber prices have once again brought together domestic tire giants. On the afternoon of the 13th, in the conference room of China Rubber Industry Association, seven domestic tire industry giants held an emergency closed door meeting to discuss how to deal with the soaring raw material prices
38220 yuan per ton, which is the closing price of the main 1105 contract of Shanghai natural rubber futures on January 13, again approaching the record high of 39800 yuan/ton set in November last year. In 2010, the price of natural rubber has increased by more than 80%. So far, the price of natural rubber has doubled
"since October 2010, the price of natural rubber has risen wildly away from the value. The era of 30000 yuan has become a thing of the past. At present, the price of natural rubber has approached the level of 40000 yuan." Dengyali, vice president of China Rubber Industry Association, said that the soaring rubber prices have caused the production costs of domestic tire enterprises to rise sharply and face the huge pressure of negative profits
for domestic tire enterprises, this is definitely a "life and death disaster". In addition to the huge pressure from the crazy rise in raw material prices, domestic tire enterprises must also deal with the challenges of the downstream chain of "industry". According to the participating tire enterprises, based on the expectation of tire price rise, dealers have increased their inventory by more than 50% year-on-year. 11. Host form: the cost pressure of tire manufacturers with portal frame structure cannot be transmitted downward at all
chenyaofeng, a representative of shuangqian Group Co., Ltd., said that the tire cost in the industry has increased by more than 50%, but the price increase did not exceed 20% in the whole year last year. Tire enterprises cannot quickly pass on the pressure of rising costs, and the survival of enterprises is "even worse"
the participating enterprises told that it was expected that the average profit of the tire industry in 2010 would decline by 30%-50% year-on-year, while the situation would be worse in the first quarter of this year, and many enterprises would suffer losses
it is understood that since last year, the high price of natural rubber has raised the production cost of tire enterprises by 50%. Although enterprises have raised tire prices for many times and improved the communication mechanism between government and enterprises, they still cannot offset the sharp increase in costs caused by the rise in the price of raw materials. From January to November last year, the profit of the tire industry fell by 22% year-on-year, with a loss of 26%. Moreover, from the perspective of the downstream market of tires, truck and bus manufacturers and construction machinery manufacturers and maintenance markets have clearly expressed their unacceptability to the continuous increase in tire prices, which will severely squeeze the tire market this year
in this context, most tire enterprises have to start planning to reduce production, or even stop production. In order to cope with the current soaring natural rubber prices, seven tire enterprises are preparing to take advantage of the Spring Festival holiday and plan to stop production for about half a month, so as to reduce the production of tires with expensive raw materials
"generally speaking, the traditional demand for natural rubber is from January to February every year. In addition, the transparency is better than that of pvc/eva and TPO. This year, Thailand, Malaysia and other rubber producing countries have had good weather, so why the price will rise so sharply? It is mainly because of capital speculation. At present, international capital speculators are still betting that the price will continue to rise." Said shenjinrong, chairman of Hangzhou Zhongce Rubber Co., Ltd
"China's natural rubber futures market is now a casino." Shen Jinrong said that at present, the largest natural rubber futures position is close to 200000 hands a day, the largest trading volume is close to 2million hands a day, and 1.5 million hands is a normal situation. "One day's trading volume is more than China's consumption in two years. There is too much hot money in China's rubber futures trading market!" Shen Jinrong said
it is reported that the global consumption of natural rubber is about 9 million tons a year, of which China's consumption is more than 3 million tons, accounting for about one third of the global consumption. In this way, the global market pool of natural rubber is not large, so if the government invests about 100000 tons of national storage rubber, it can stabilize the spot market price of the whole natural rubber
"China's tire industry is experiencing unprecedented difficulties, which requires the concerted efforts of the enterprise itself, the industry and the government to tide over the difficulties." Cai Weimin, Secretary General of the tire branch of China Rubber Industry Association, suggested that the government should improve the reserve mediation mechanism, seize the opportunity to release national reserve rubber, improve the trading varieties of rubber futures market, and stabilize the excessively high market price of natural rubber. At the same time, we urge the relevant government departments to make a decision to reduce the import tariff of natural rubber as soon as possible, and urge synthetic rubber manufacturers to regulate the price of synthetic rubber to ensure the stable and healthy development of the domestic tire industry
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