Notice on the Release of the Action Plan for Comprehensive Control of Air Pollution in the Beijing Tianjin Hebei and Surrounding Areas and the Fenwei Plain in the Autumn and Winter of 2023-2024 (Draft for Soliciting Opinions). Dozens of urban chemical enterprises in major chemical provinces such as Shandong, Henan, Hebei, and Shanxi may face production restrictions and shutdowns. Chemical enterprises limiting production and stopping production can stimulate the prices of tire raw materials, and even cause a new wave of price increases!
Strictly control 56 cities in 7 provinces
The implementation scope includes: Beijing; Tianjin City; Shijiazhuang, Tangshan, Qinhuangdao, Handan, Xingtai, Baoding, Cangzhou, Langfang, Hengshui, as well as Xiong'an New Area, Dingzhou, and Xinji City in Hebei Province; Taiyuan, Yangquan, Changzhi, Jincheng, Jinzhong, Yuncheng, Linfen, and Lvliang cities in Shanxi Province; Jinan, Zibo, Zaozhuang, Dongying, Weifang, Jining, Tai'an, Rizhao, Linyi, Dezhou, Liaocheng, Binzhou, Heze cities in Shandong Province; Zhengzhou, Kaifeng, Luoyang, Pingdingshan, Anyang, Hebi, Xinxiang, Jiaozuo, Puyang, Xuchang, Luohe, Sanmenxia, Shangqiu, Zhoukou, and Jiyuan cities in Henan Province; Xi'an, Tongchuan, Baoji, Xianyang, Weinan (including Hancheng City) and Yangling Demonstration Zone in Shaanxi Province.
Every year as we enter the heating season, tire companies are in a state of panic. This year, the shutdown order has come again, and the prices of tire raw materials have reached new highs!
The price of carbon black remains stable at over 11000 yuan per ton
According to data from Business Society, the domestic carbon black market has been operating steadily at a high level this week. On October 24, 2023, the reference price for domestic carbon black N220 was 11200 yuan per ton. It is understood that due to the high market price of carbon black raw material coal tar, the cost side supports the short-term rise of carbon black prices, and the high performance of the raw material market continues to rise. The support for carbon black cost side is strong, and inventory levels are not high. It is expected that the short-term carbon black market will fluctuate and rise.
Not only that, major carbon black companies have also issued notices of rising carbon black prices.
Tokai Carbon CB announced that it will increase the market sales prices of all carbon black varieties in North America starting from November 1, 2023, or the date specified in the contract.
Cabot announced that starting from October 1st, the price of all rubber carbon black products sold by its reinforcement materials department in the North American market will be increased by 6% to 9%. In the domestic market, Cabot implemented a RMB 1500/ton increase in the sales prices of all special carbon black products produced in China as early as August 16, 2023.
30%~40% increase in butadiene price
According to data from Business Society, on October 23, 2023, the benchmark price of butadiene was 9137.50 yuan/ton, an increase of 4.91% compared to the beginning of this month (8710.00 yuan/ton).
Not long ago, CCTV Finance Channel reported on the price of synthetic rubber. The report shows that the price of synthetic rubber, also known as butadiene rubber, has increased by about 34%. What is the reason for the continuous increase in the price of synthetic rubber? Synthetic rubber is synthesized from butadiene, a raw material of petroleum and natural gas, and is mainly used in tires, sports shoes, and cables. The synthetic rubber enterprise logo has been producing at full capacity since the beginning of a few years, but it still cannot meet the downstream market demand.
The price of synthetic rubber has increased by about 40% since May and June, with a significant increase. The rise in synthetic rubber prices has also driven up the prices of natural rubber and styrene butadiene rubber. The growth rate of the entire industry chain is over 30%.
High level operation of natural rubber
On October 25, 2023, the main price of rubber was 14540 yuan per ton. In July, the price of rubber was still below 12000 yuan per ton. In just three months, the price of rubber increased by 3000 yuan per ton.
Raw material prices still need to rise!
The "Draft for Soliciting Opinions" specifies the shutdown time for the 4.3 meter coke oven in Shanxi and Shaanxi provinces, and the withdrawal of concentrated production capacity will take place in the fourth quarter. The "Draft for Soliciting Opinions" proposes that all regions strengthen the promotion of outdated coal-fired boilers and furnaces to be phased out and updated, requiring the elimination of 55 coal-fired boilers and 169 gas generators by the end of December 2023; Shanxi Province has shut down the coke oven with a height of 4.3 meters in the carbonization room, and Shaanxi Province has formulated an exit plan for the coke oven with a height of 4.3 meters in the carbonization room, clarifying the time schedule. It is expected that 31.78 million tons of production capacity will be phased out nationwide and 23.73 million tons of new production capacity will be added in the fourth quarter. The implementation of centralized production capacity addition and elimination in various regions will be carried out in the fourth quarter.
In the current market context, the third round of "rising tide" of coke has arrived. Starting from 0:00 on October 12th, the coke prices of coke production enterprises in Weifang, Binzhou, Dezhou, Jining, Zaozhuang, Heze, Rizhao, Tai'an, Linyi and other places in Shandong Province have increased by 100 yuan/ton for wet quenching coke and 110 yuan/ton for dry quenching coke on the basis of the original prices.
Will tire prices continue to rise?
Tires are composed of natural rubber, synthetic rubber, carbon black, steel, and various chemical raw materials. Among them, natural rubber accounts for 28%, synthetic rubber accounts for 26%, and steel accounts for 9%. The proportion of these three raw materials is as high as 63%. Chemical raw materials account for 14%, including carbon black. So, the cost of tire raw materials is the first factor that affects tire manufacturing costs.
So how much has the raw materials used in tire production increased recently? The price of rubber has increased by more than 20% from 11665 yuan per ton in early June. Compared to 8500 yuan per ton at the end of July, the price of carbon black has increased by nearly 20% or more. The price of butadiene has increased by 30% -40%. What about the tires?
Among tire enterprises, there are many price increases, but the proportion of price increases is within 1% -6%. The overall price increase of tire products is not high. It can be clearly stated that as for the price increase of tire raw materials, tire enterprises have already absorbed a part of it internally. As stated in the enterprise price increase notice, due to the continuous rise in raw material prices, tire enterprises have to increase prices, and the price increase of tire products is far from catching up with the price increase of tire raw materials.
Under the influence of further price increases in raw materials in the future, the possibility of further price increases in tires cannot be ruled out!
Tires, are you hoarding them?
The reason why most tire dealers choose to hoard goods is closely related to rising prices. Dealers are particularly sensitive to the market and accelerate the pace of hoarding when prices start to rise. The more confused the market becomes, the stronger the awareness of tire dealers in hoarding. Sometimes hoarding is a great opportunity for you to make big money, but sometimes it is also a shackle that forces you into a desperate situation, At this time, do not burden yourself with the pressure of goods. Instead, seize the opportunity.
Disclaimer: The image materials and articles on this platform come from the internet, so the copyright belongs to the original author. If any infringement is caused to your copyright and interests, please contact us. We apologize deeply and promptly delete it. Article source: Tire Business, Business Society
Latest news
- The Combination and Foaming Process of
- Famous tire enterprise with multiple d
- Ministry of Commerce Initiate a final
- The Effect of Carbon Black on the Cutt
- Stop work orders encounter rising pric
- Lanzhou Petrochemical's carboxylated n
Contact us
- ADD: Room 4210, CEC Business Hall, No. 121-4, Nanjing South Street, Heping District, Shenyang
- TEL: 13644907299
- FAX: 024-25361668
- E-mail: boss@long-green.cn
> News