Chinese Tyre Manufacturers Increase Price Again From December

More than 43 Chinese tyre manufacturers have announced to increase tyre price again by 3 percent to 5 percent due to the raised production cost from December. This new round increase is based on the raise of the small component in tyre production like Fabric and carbon black. The new price is implemented to better align tyre prices with the cost of raw materials and currency developments. 

Since the beginning of the year, tyre price keeps an upward tendency. There are 4 round of price increase in August, September, October and December respectively since the third quarter of 2017. It is estimated that the tyre production will be extremely tight before Chinese Spring festival holiday, even there is severe shortage of supply in the market. 

We would view year 2017 as the toughest year, the tyre market are influenced by various aspects such as the environmental pollution control, the fluctuation of raw material, RMB appreciation. 

As the result of rapid development and excess production capacity, several big-scale tyre manufacturers were closed down this year because of the failure to secure financing and lose the liquidity. Shortage of supply is associated with low manufacturing capacity utilization to 65%, furthermore the price competition is increasingly fierce.

In order to break out the price competition and fight their own way out, NAMA Company devote themselves to provide high-end quality tyre range to their clients, they are offering high-end TBR tyres which are designed for over-loading conforming to EU standard, and full range of PCR tyres with complete segment in excess of 400 sizes.