Hike Of Prices In The Chinese Tire Market

China has been one of the largest distributors and manufacturers in the tire industry. China has been dominating the market as it has cheap labor but the things after the pandemic have been different and the market is in demand of tires after almost a year of lockdown around the globe. As the demand has been increasing, the prices are skyrocketing. Most of the factories in China have increased their prices.

Raw material:
Factories mentioned the reason for increasing prices as the cost of raw material (Carbon Black, synthetic rubber, and steel cords) has been increased from the back-end. As the tire is made up of different kinds of materials and at the end of the year 2020 the rubber tire demand was touching the sky and there was insufficient production of rubber which resulted a peak in rubber prices as there was a shortage in the market 2-3 percent price was increased. Brands like Goodyear and Bridgestone also increased their price around 5 percent. A tire is the most initial part of the car and this is where supply-demand plays the role in the price increase all around the globe.

Freights Booming:
Freight has also been unstable for a while, as there was a shortage of containers when there was a pandemic going on the prices of the freights were on a hike. It has started to take a decrease as the world is getting back to business after the vaccination programs have been started by nations all over the globe. Looming tariffs resulting from the trade tensions between the US and some Asian countries in which 15% percent tariff on tires coming from China.

Upcoming time:
Tire prices have been increased in the upcoming month of April 2021’s production as the demand remains the same in the market and China not only dominates the domestic market, it also dominates the international market by exporting their product.