Deng Yayi, President of China Rubber Industry Association, said on May 29 that the development of China's tire industry in 2014 will continue the characteristics of 2013, that is, the price rises and prices will drop, and the market pressure will be high. The main reason is that the price of raw materials has driven the tire products. The price fell.
“As raw material prices for natural rubber go down all the way, the market will expect the price of tires to fall. This expectation has been even stronger since 2013.†Deng Yaxi explained.
Zhang Wanyou, general manager of Shuangqin Shares , also stated that the decline in tire raw materials caused the product to fall, and then promoted the continued decline in the upper reaches. This has already formed a vicious circle. “Now the tire industry has entered an era of low profit.â€
“In the past, the tire industry was also very sensitive to price, but it only increased sales and declined prices in disguised form. However, since the second half of last year, due to overcapacity, the raw material prices have caused the entire tire industry to have to price clearly and maintain value. This is a new industry in our industry. Normal, it is expected to continue in the future." He said.
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