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Limit production and stop production? Rubber tire enterprises want to raise prices

Views: 1000     Author: Site Editor     Publish Time: 2022-12-04      Origin: Site

At present, the environmental protection campaign in autumn and winter across the country is in full swing. Recently, 15 departments, including the Ministry of Ecology and Environment, jointly issued the Action Plan for Deepening the Fight against Heavy Pollution Weather, Ozone Pollution Prevention and Diesel Truck Pollution.

In Dongying, an important tire town, a press conference on air pollution prevention in 2022 was also held recently. It was said at the meeting that the rectification plan of "one policy for one bank" and "one policy for one enterprise" for petrochemical, organic chemical, rubber tire and other key industries in Dongying City was being prepared


At the same time, the meeting announced that nearly 100 enterprises had been investigated, focusing on the on-site troubleshooting and analysis of each process of enterprises in key industries such as petrochemical, organic chemical and rubber, and found many problems and put forward relevant rectification suggestions.

That is to say, in order to "make the sky of Dongying more blue", Dongying has increased its supervision on chemical and tire rubber enterprises, and a special pollution control plan for the chemical/tire industry is about to be released

As we all know, rubber, carbon black, tire and other chemical industry factories are high pollution and energy consumption enterprises. Every autumn and winter in the environmental protection season, they will become key inspection objects and be required to "reduce or stop production".


This year, Dongying City is no longer satisfied with the general "100 day Action Plan for Air Pollution Control", but is preparing to issue a targeted "one line, one policy" and "one enterprise, one policy" remediation plan, which will definitely have more strict requirements on the pollution discharge and production process of the tire industry, or will have an important impact on the normal operation of the chemical industry and tire industry. Production suspension/restriction is also possible.

Because in the period of high air pollution in December last year, local governments in Shandong, Dongying and many other places have stepped up efforts to regulate these enterprises, and clearly required that "all enterprises such as tires and plastic rubber products stop production".

Limited production capacity of raw materials/tires, or impact on product prices

The prices of all products are directly related to supply and demand. After the release of the "one policy for one industry" and "one policy for one enterprise" pollution control program in the tire industry, the prices of rubber, carbon black and other tire raw materials will fluctuate, which will then affect tire prices

1. After November, the price of natural rubber rose in shock

In fact, after November, the price of natural rubber futures began to rise in shock. As of the afternoon of November 17, the price of the main rubber was 12810 yuan/ton, up 1.43% from yesterday, breaking the 12500 yuan mark.

When the rubber production capacity is limited, it is possible for the rubber price to rise again.


2. The price of carbon black has reached the highest level in 110 years

According to the data of "Wild Swan" platform, the price of carbon black will be 12,099 yuan/ton in November 2022 (as of November 15); The year-on-year growth rate was 30.89%. From now on, the price of carbon black is also at the highest level in 10 years.

Since this year, the price of carbon black has risen all the way and created a new record high, mainly due to the significant rise in the price of coal tar at the cost end, which belongs to the chemical industry under strong supervision in various regions in autumn and winter


Future market forecast

Under the continuous inflation, the raw materials continued to be high. The tire enterprises were under huge cost pressure, but were trapped in the market downturn. The tire enterprises had to reduce prices and promote sales.

In the financial report of tire enterprises in the first half of this year, most tire enterprises increased their income but did not increase their profits. Many listed enterprises experienced profit declines or even losses. Only some tire enterprises relying on the export market can guarantee profits.

However, the export market in August has been sluggish. According to the data of the General Administration of Customs, 48.23 million new pneumatic rubber tires were exported in August, a month on month decrease of 6.14 million, or 8.9% year-on-year.

It can be predicted that the third quarter report of the tire enterprises listed in October will be even worse. The tire enterprises can lose for a while, but they can't keep losing, otherwise the shareholders will vote with their feet.

Therefore, in order to make the performance of 2022 not too ugly, it is highly probable that tire enterprises will increase prices again in the autumn and winter of this year when raw materials continue to be high.


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