Michelin, Bridgestone, Kumho, and Linglong will all raise prices in June!

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.

Kumho issued a price adjustment notice on June 17, 2022. Starting from July 1, the operating price of some specifications will be raised and the dealer promotion policy will be adjusted, in order to cope with the rising manufacturing cost pressure by optimizing the product price structure.

According to My Tire.com, in June, Michelin and Bridgestone raised fares for the full range of truck and bus tires by 6-8% and 4-6% respectively. Linglong Tire’s passenger car tires and truck and bus tires have mostly increased prices by 2%-4%, and agents will be given an additional 0.5%-2% when they complete the corresponding target. Zhongce, Triangle and Chengshan slightly increased the price of some products by 1%.

Jianxin tires also issued a price increase notice. Announced that from June 11, all brand products will be increased by 3%-5% on the basis of the original price.

Oil prices led the rise in other raw materials for tires last time. Since the outbreak of the Russian-Ukrainian conflict in February this year, oil prices have been pushed up. According to Xiaobang statistics, on January 11 this year, the price of crude oil was still US$78.91/barrel, and by June 9, it had risen to US$123.24/barrel.

The price of refined oil has also risen. With the upcoming 11th round of domestic refined oil pricing cycle, No. 95 gasoline may enter the “10 yuan era”, and 92 gasoline will fully enter the “9 yuan era”.

The price of synthetic rubber with oil and natural gas as raw materials has also been pushed up. Recently, Sinopec and PetroChina have raised their ex-factory prices of butadiene rubber to around 15,000 yuan/ton, an increase of about 500 yuan/ton.

In addition, under the conflict between Russia and Ukraine, the prices of other tire raw materials such as carbon black have also continued to increase. Coupled with the impact of the epidemic and other reasons, the cost of product transportation has also continued to increase. A variety of factors have contributed to the rise in tire prices.

This year, the price of tires has risen for several rounds. After June, the price of natural rubber has been sluggish. I thought that the price of tires would not increase in a rush, but now, the increase in oil prices has pushed up the cost of tire manufacturing, and inflation has led to industrial raw materials. Prices have generally risen, and the possibility of announcing a new round of tire price increases is very high.

In this case, Xiaobang does not recommend stocking up blindly, but stocking up on demand according to your own inventory, because the current tire sales market is sluggish, and the biggest problem facing tire shops is not price increases, but lack of demand. Therefore, tire people Pay close attention to the cost of oil and other raw materials for tires to make the right decisions.

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