Recently, the current situation of the tire market has attracted the attention of CCTV Finance and Economics. Entering 2022, the tire industry will be pressed step by step in many ways, and life will be tight from top to bottom.
The situation of the tire market is not optimistic, but the price of raw materials is higher than a mountain, and tire companies are facing the dilemma of "powerlessness". Many tire factories "see the food and eat" and adjust the production scale to adapt to the changes in the market.
Since late March, 14 provinces and cities have been closed at high speed, and tires are faced with the dilemma that most of China cannot be shipped. Due to the impact of the epidemic, Michelin has issued two notices to explain which warehouses cannot deliver goods.
Logistics outage has become the most difficult problem in the tire market. For example, this brother said that the logistics from Taiyuan to Xiyang has been stopped for several days, and the goods cannot be delivered; he has already ordered a truck of goods and cannot be returned due to the epidemic. coming.
The operating rate of tire factories drops again and again. Taking Shandong, the capital of tires in China, for example, the operating rate of most tire companies is maintained at about 60%, and the operating rate of relatively good companies is only maintained at about 80%. According to recent data from Zhuochuang Information, the operating rate of all-steel tires in some areas of Shandong is only 56.38%, down 20% from last year.
Affected by factors such as the price of raw materials, the price of tire products keeps rising. A tire shop in Hangzhou cancelled all preferential policies as early as the beginning of the month and sold them at the original price. The younger brother mentioned that the average price of a 205/55R16 tire last year was 300 yuan per tire, while the overall price this year was 399 yuan per tire, an increase of more than 30%.
It is even more difficult for tire dealers to be caught in the middle. On the one hand, they must complete the sales tasks assigned to them by the upstream tire factory, and on the other hand, they must try to shorten the payment cycle of the tire shop below. This has created a more intense tire competition environment. Even if the upstream price increases again and again, tire dealers dare not increase too much, resulting in lower gross profit for tire dealers.
Then the tire factory's life will be better. Although the first quarter financial report of domestic tire companies has not been released, we can look at a group of data from other companies: According to FnGuide, the operating profit consensus of the three major tire companies in the first quarter of this year Hankook Tire is expected to be 113 billion won, down 39.2% year-on-year, and Kumho Tire is expected to be 9 billion won. Nexen Tire is expected to lose 11.2 billion won. This set of data also succinctly shows that even if the price rises, it will not be able to resist the decline in the profits of tire companies.
Since February, a tire shop in Beijing has sold only more than 100 tires, which is the same as a week in the past peak season. Tire shops are also laying off employees. In order to keep the tire shops alive, they can only lay off employees and work on their own to reduce expenses.
As far as the current situation of the epidemic is concerned, it can be brought under control as early as May, or even for a longer period of time. In the previous survey data, 12% of tire shops are operating normally, and 59% of tire shops are waiting for notification. Another 27% of tire shops said they were not working at all and had to close their doors.
According to the data, as of the end of March 2022, the total stock of semi-steel tire sample enterprises was about 18.63 million, a year-on-year increase of 15.77%; the total inventory of all-steel tire sample enterprises was about 12.435 million, a year-on-year increase of about 41.34%.
In 2021, my country will cancel nearly 28,000 tire-related companies, a year-on-year increase of more than 37%. Facts have proved that the market demand has been greatly reduced, from upstream factories to downstream dealers and retailers to make ends meet, and no one is spared. Of course, the market downturn has already appeared in the past few years, but this year's epidemic has made the downturn worse. As business becomes more and more difficult to do, many companies have to declare bankruptcy, so the "bankruptcy tide" has become a trend again.
In today's market, no matter how the market cannot be motivated to digest the inventory of tire companies. No price increase, no promotion, no push, no coaxing, no more pressure on sales!
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