MEGALITH NEWS

Raw materials fell across the board, and tire prices will start a falling mode?
On July 5, international oil prices suffered a slump, with Brent crude oil and U.S. crude oil falling by more than 10% during the session.
As of the close, the price of light sweet crude oil futures for August delivery fell below $100 a barrel and closed at $99.50 a barrel, a decrease of 8.24%; the price of London Brent crude oil futures for September delivery fell by 9.45%, It settled at $102.77 a barrel

Recently, we have been paying attention to the trend of tire raw material prices, but the recent trend is somewhat confusing.
Since the last time the price of raw materials for tires fell, rubber and crude oil prices have begun to recover.
Does that mean tire prices are about to start rising again?

On June 26, Sailun announced on the Shanghai Stock Exchange that it would invest about 17.5 billion yuan to build a factory and set up a subsidiary in Dongjiakou, Qingdao.

This investment includes: an investment of about 15.181 billion yuan to build a project with an annual output of 30 million sets of high-performance radial tires and 150,000 tons of off-highway tires; an investment of about 2.302 billion yuan to build a new functional material project with an annual output of 500,000 tons.

Since the beginning of this year, the tire market production and sales have been so poor. Recently, a research institution investigated the real production status of China’s tire industry:

Recently, Michelin released global tire sales data in May. China tire data is still the worst.

Whether it is making tires or selling tires, it is a business that requires a lot of capital to run. Once the capital circulation problem of tire enterprises cannot be solved, even the experienced enterprises who have gone through years will only be able to go bankrupt.

Since June, domestic tire companies have raised prices one after another due to the continued high levels of crude oil and other tire manufacturing raw materials.

Recently, the foreign network reported that after Goodyear acquired Cooper Tire, whether Cooper’s brands will be integrated into Goodyear’s product portfolio has been attracting attention.

Some time ago, there were reports of tire shrinkage incidents. At that time, a small number of shop owners reported that some tire manufacturers produced “shrinked” tires in order to reduce costs.

Recently, Qingdao Customs announced to the public that Qingdao Customs destroyed 32 tons of infringing tires in a harmless manner according to law.

According to the news from the Financial Associated Press on June 2, the sluggish tire industry has ushered in some signs of improvement. Stimulated by policies such as resumption of work and stable growth in Shanghai, the tire industry is expected to recover strongly.

Recently, the F6 Big Data Research Institute released the May 2022 Automotive Aftermarket Report.

Data show that in May, the year-on-year decline in output value narrowed, with a month-on-month increase of 8%.