Zhongce Rubber Price Increase

On January 17, 2025, Zhongce Rubber Group announced a price increase notice. Starting from February 2025, they will adjust the invoicing prices of three full-steel TBR products, with a maximum increase of 3%.

2025 Price Increase Notice

Pirelli Price Increase: 3%-5%

Recently, Pirelli announced that, due to the continuous rise in raw material prices and an increase in overall operational costs, the company has decided to adjust the prices of motorcycle and scooter tires in the Chinese market by 3%-5%, effective from January 1, 2025.

Continental Tire Price Increase: 3%

On January 2, 2025, Continental Tire (China) Co., Ltd. issued a price adjustment notice. The notice stated that due to the continued rise in raw material prices, along with high costs for freight, logistics, and energy, which are unlikely to improve in the short term, the company will adjust its product purchase prices starting February 1, 2025, with a maximum increase of 3%.

Viking Tire Price Increase: 3%

Continental Tire also announced that the price of Viking Tires will be increased by up to 3% starting February 1, 2025. This increase is driven by the same factors: sustained rises in raw material costs and high freight, logistics, and energy costs.

Michelin Price Increase: 3%-8%

On December 31, 2024, Michelin (China) Investment Co., Ltd. released a price adjustment notice. Michelin stated that due to the continuous rise in key raw material prices, tire production costs have increased. To continue providing high-quality, high-performance products and enhance the consumer experience while ensuring the company's stable operation, Michelin will adjust prices for its commercial vehicle tire products, light truck tires, and non-road transport product lines in China and Mongolia, with an adjustment range of 3%-8%, effective from January 20, 2025.

Dunlop Price Increase: 3%

On December 6, 2024, Dunlop Tire Sales Co., Ltd. issued a price adjustment notice. The notice indicated that due to the significant increase in raw material prices, which has led to a sharp rise in production costs, Dunlop has decided to increase the prices of passenger car tires by 3%, starting from January 1, 2025.

Bridgestone Announces Price Increase

Bridgestone Tire Sales Co., Ltd. recently issued an important notice announcing that, effective February 1, 2025, they will adjust the prices of their passenger car tires. This decision reflects the current pressure on the tire industry due to rising raw material costs.

Price Hike Started by Foreign Tire Manufacturers

The price increases initiated by foreign tire manufacturers have not yet spread to domestic tire companies. However, looking at the price increase notices from foreign tire companies, it is clear that the rise in raw material prices is the primary reason for these price adjustments. Therefore, we must first examine the raw material prices to understand the impact of these price hikes:

Natural Rubber Prices

On January 17, 2025, the closing price for natural rubber futures was 17,435 yuan/ton. For those familiar with the tire industry, this price is considered high. Throughout 2024, the price of natural rubber futures surged close to 20,000 yuan/ton. Although there has been a slight decrease recently, this high price still significantly impacts tire manufacturers.

Tires are made from natural rubber, synthetic rubber, carbon black, steel, and various other chemicals. Natural rubber accounts for 28%, and synthetic rubber accounts for 26%, making up over 50% of the tire's composition. Therefore, the rise in raw material prices is the primary factor affecting tire manufacturing costs.

Tire Factories Preparing for Holidays

Although current data shows that tire factories are operating at a high rate, many tire companies are already planning for holiday shutdowns. This year, compared to last year, there has been a noticeable change in the holiday schedule. More semi-steel tire factories are planning longer holidays, while tire factories in Quangang have similar holiday plans as last year, and some tire factories have even delayed their holiday schedules.