Into the fourth quarter, the production of tires, the main raw materials carbon black, natural rubber prices first rose and then fell, and tire products after a round of price increases will not soon after the price cuts, and at present the head of the tire industry orders are still relatively sufficient, the relevant business performance is expected to thicken.

Natural rubber, carbon black is the main raw material for the production of tires, natural rubber, carbon black prices rose sharply in September-October, tire companies face cost pressures.

During the same period, carbon black prices fell more. Shanghai Steel Union data show that on November 30, China's average spot price of carbon black market 8964 yuan / ton, compared with -10.07%, year-on-year -29.81%.

Tire Companies Expected to Boost Performance

Raw materials account for about 70 percent of tire production costs, while natural rubber and carbon black account for about half of all raw material costs, the aforementioned industry insider told Caixin. "Recently, other raw materials, such as parabutylene rubber, have also had a large drop, although the rise and fall of raw materials in the short term on the company's impact is not great, but in the medium and long term, the cost decline is good.

From the demand side, the demand for semi-steel tires in the fourth quarter has been relatively strong, all-steel tire demand is weaker.

From the all-steel tires downstream point of view, November heavy truck sales of 75,000 units, compared with October's 80,000 units fell 8%, compared with last year's 46,600 units increased 61%. Put in the past seven years, only higher than 2021 and 2022, still at a low level.