The strain on the resources of natural rubber tire company overwhelmed

For enterprises to improve product mix, increase the proportion of high value-added products, the restructuring of the merger, the play of scale, and so on, very important. For example, meridian tires technical content and added value than bias tires, only 55%, much lower than developed countries, indicating great potential for development. Therefore, to speed up the development of the radial tire, become the most urgent task.

Tire category this year, the operating results of listed companies continued to decline. Qingdao Double Star (000599) May 1-9 this year, net profit fell by about 40%; Tire & Rubber (600,623) in the first half of the 28.8 percent increase in production of the main profit declined 13.42 percent. The main reason is the decline in rubber prices lead to increased costs, while China's tire industry to pass on the lower reaches of the cost of the capacity is generally low.

Lead to resource prices

Rubber prices since the beginning of 2004 has shown a rising trend since the second half of last year Gengmeng rise, natural rubber prices hit a new 22-year high. Poly source of statistical data show that China's 36 large and medium-sized cities in the average retail price in January 2004 of domestic natural rubber, plastic marked # 1 for 13,423 yuan / ton, by the end of the year reached 16,000 yuan / ton, and March this year, breaking 20,000 yuan / Tons in July to reach a high point of 25,325 yuan / ton. From the beginning of August callback, since the basic situation was back, the Shanghai Futures 3 months rubber prices in the 21,000 yuan / tons of oscillation.

Rubber prices rose sharply due to market supply and demand, there is a big gap. According to the data, China's rubber consumption has been showing strong growth in domestic natural rubber production this year, only about 600,000 tons, more than 900,000 tons gap, the need to rely on imports to make up for a lot. From the international market, supply is tight. According to the International Rubber Study Group forecast that this year the world's natural rubber supply gap for 250,000 tons.

If people in the industry, the world economy, especially China's rapid economic development, including the drive of natural rubber, raw materials prices and increased demand. In recent years, world oil prices and rising prices make synthetic rubber, natural rubber also support the prices.

In the next few years from natural rubber price trend, even though there will be some major fluctuations, but overall is on the increase. The main reason is that natural rubber planting area and output of the expansion of the need to improve a process. World crude oil prices in general are still high, synthetic rubber prices high Department. The market demand for rubber in China in particular, the demand will continue to grow.

Tire industry profits have been eroded

Rubber prices continued to rise downstream businesses enormous cost pressure on profit margins have been severely compressed. The tire manufacturing industry most affected.

State Information Center's statistics show that in sales, costs, expenses and other factors, in the first half of this year, the tire industry profits down further. Data show that the size of China's annual output of 5,000,000 in the tire business, Jiaojia costs will rise by 1.5 billion yuan, much higher than the previous year's corporate profits. While many manufacturers have raised prices, but far from Jiaojia offset rising costs brought about by the increase in earnings this year, most of the tire companies are not optimistic. According to the Rubber Industry Association, Shandong Province, Shandong Province, about 8 bias tire business into a loss; radial tire production of large-scale enterprises better, but also the cost of huge increase in business overwhelmed.

Qingdao Double Star this year's 1-3 quarter tire business owners operating profit margin of only 7.74 percent over the same period last year, a decrease of 10.46 percent of the 2.72 percentage point higher than the same period in 2004 of 12.69 percent decline 4.95 percent. Tire & Rubber May 1-6 this year to complete the main business income of 2,725,000,000 yuan, up 18.07 percent, but net profit for the realization of 58,863,300 yuan, an increase of 4.04 percent, after deducting non-recurring income fell 63.05 percent. The company said 1-June due to rising material prices increase the cost of more than 21,800 yuan.

Whether by raising prices to pass on the cost? In fact, this year's tire product prices have increased, the basic rate of increase in the 5-10% range of brand-name products will be even more significant price increases more. But overall, increases far less than the increase in costs. The main reason for China's tire industry is still more than small, scattered, and so chaotic, disorderly competition seriously, it is difficult to have a full price rise.

However, the recent drop in prices of natural rubber, especially in the lower reaches of the tire manufacturing industry to ease the cost pressure is beneficial.

Multi-start to ease shortage

To ease the shortage of natural rubber, we must increase revenue and cut expenses.

Open source is to make every effort to expand the supply, it must expand the acreage of natural rubber to increase production. However, due to natural conditions, by increasing the domestic supply of certain limitations. Experts believe that to "go out, please come." Going out is to go abroad to develop natural rubber, to make up for the shortage of domestic resources. This is being taken up in the next decade or two, in Yunnan to Laos, Myanmar to develop 4-5000 mu of rubber. Please come in and that will be advanced cultivation technology to improve rubber production.

Reducing costs, the development and adoption of new technologies to improve the efficiency of resource use is the most important. For example, this year, Goodyear developed a new patented polymer products and rubber, natural rubber consumption can be reduced by 15%, while the performance did not decline. And is the development and application of thermoplastic elastomer (TPE) and liquid rubber is also cause for concern, has been replaced by part of the Synthetic and natural rubber. If this trend further development will help to change the natural rubber market supply and demand.

For enterprises to improve product mix, increase the proportion of high value-added products, the restructuring of the merger, the play of scale are very important. For example, meridian tires technical content and added value than the bias ply tire, radial tire has been in recent years, despite China's rapid development, but the proportion is still low, only 55% behind many developed countries, also shows that the development potential of very Great. Therefore, enterprises should speed up the development of the radial tire, to increase their share.