Zinc oxide and other raw materials prices rose Tire business lift prices tide demand is still optimistic
In the first half of this year, due to the continuous rise in the prices of raw materials such as zinc oxide, many tire companies experienced sluggish sales despite the hard-to-cover cost of their products. This also led directly to a new round of tire prices surge recently, according to media reports, nearly 70 tire companies announced the price hikes, and some tire companies announced price hikes in recent days or even twice.
In this regard, the market interpretation of the person from the major tire companies in the fiscal year earnings can be seen that the global tire companies are now faced with the cost of rising difficulties. After trying every means to reduce costs, still can not alleviate the rising costs for business survival tremendous pressure. Price has become the only way out.
According to SMM, the tire sector accounts for more than half of the demand for zinc oxide orders, so the rising price of zinc oxide has also become one of the reasons for the soaring cost of the tire business. As shown in the graph above, the price of zinc oxide has continued to rise since October 2016, and the price has been especially strong since June this year.