Tire raw materials generally rise

In March, the price of synthetic rubber rose suddenly. The price of cis-butadiene rubber once exceeded 14,000 yuan/ton, and the current price of styrene-butadiene rubber was also at the level of 13,000 yuan/ton.

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Compared with the beginning of the month, the prices of the two have increased by 500-900 yuan/ton.

Synthetic rubber prices fell steadily

Due to the previous suspension of production by tire companies and the weakening of social inventories, the prices of styrene-butadiene and butadiene rubber in the Shandong market have maintained a steady downward trend since the end of last year.

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Russia-Ukraine conflict intensifies panic in synthetic rubber futures market

However, the escalation of tensions and conflicts between Russia and Ukraine and the imposition of sanctions by the West on Russia caused panic in the international market over crude oil supply, and the price of international crude oil futures soared for a time. Brent futures rose above $120 a barrel.

And this made the market anxious about the supply of crude oil chemical products, and panic hype and buying caused the price of synthetic rubber to rise suddenly.

The price of tire raw materials has generally risen recently

According to observations, the prices of the main raw materials of tires have generally risen recently. In addition to the rise in crude oil prices, the price of natural rubber has also fluctuated at a high level of around 13,000-14,000 yuan; the price of carbon black has also ushered in a slight rise since March.

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If the impact of rising crude oil prices persists, tire makers’ costs may increase further, making it more likely that corporate product prices will increase.

Be prepared for price hikes

If tire product prices continue, tire sales may face greater challenges.

Faced with the signs of price increases, tire sellers also need to rationally face their own market situation, including reasonable control of sales costs, diluting the sales impact caused by price increases; maintaining the health of their own capital chain; rationally stocking up to ensure that the inventory is sellable and controllable.

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