It is understood that since September 2010 until now, the price of natural rubber, the main raw material for tires , has continued to soar, and it has now surpassed the 30,000 yuan mark and continues to create historical highs. On the other hand, the United States, India, the European Union and other countries are conducting anti-dumping investigations on China's construction machinery tires and radial tires, making it difficult to export tires in China.

Statistics from related departments show that the price of rubber has doubled in one year: the spot price was RMB 16,000/ton in October 2009, and the price of the first-grade product reached RMB 35,400/ton on November 11, 2010. The rise in the price of rubber still has no meaning to stop, resulting in a substantial increase in the cost of production of rubber product companies and the unsustainable production and operation of enterprises. A related person of the China Rubber Industry Association Tire Branch stated that in the first nine months of 2010, the production costs of the 43 companies in the tires division rose by nearly 30%, and profits have dropped by 20.6%. The efficiency has dropped significantly, and loss-making companies have increased. Statistics from the China Rubber Industry Association Tire Branch in the first 7 months of 2010 showed that there were 10 loss-making companies in 43 companies, a loss of 23.3%, and a loss of 222 million yuan. The three quarterly reports of a number of tire companies released recently show that the profitability of the tire industry has not been optimistic. Industry insiders estimate that in the fourth quarter there may be a loss in the entire industry.

Experts said that rubber prices are one of the most sensitive aspects of tire manufacturing companies and directly determine the profitability of companies. In this situation, the tire industry is brewing a new round of price increases to make up for corporate profits. According to a survey of dealers in Shanghai, Zhengzhou, and Jiangsu, the price of tires in the 4S store has risen quietly since October. According to the relevant person of the China Rubber Industry Association Tire Branch, the increase in tire companies may reach around 8%. Even so, the overall operating status of the tire industry is difficult to improve in the short term.

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