Tire prices in the second quarter, encountered bottlenecks!
2021-04-28
In the second quarter, some new changes in the tire industry began to appear gradually.
According to the analysis of Zhuochuang Information, the tire industry performed well in the first quarter. Entering the second quarter, some new changes in the tire industry began to gradually appear:
The first change is that the high trend of tire construction has gone. The tire market in March, April and May is the peak season for sales, and tire starts are mostly at this time. More tire manufacturers will take advantage of the May Day holiday to regulate production, that is, before and after the May Day tire construction will enter a new low performance.
The second change is that the collective inventory of manufacturers is now growing. In April, the manufacturers still maintained a high level of production in the early stage. Under the condition of poor market transmission, about half of the replacement market sales may be stranded, which means that nearly 20% of the production in the manufacturers will be temporarily transferred to inventory (incomplete statistics). Therefore, the tire manufacturers will enter the inventory accumulation stage in April and still have the risk of inventory growth in the next May and June.
Change three is the price increase bottleneck. In the middle of the month, individual tire manufacturers started to stop the rise and make profits, the market wait-and-see sentiment again strongly gathered. Although the performance of raw material prices have fallen, cost support seems to have weakened, some manufacturers this month on the price increase part of the cancellation behavior. In addition, some agents consider more inventory reserves, coupled with the expected suspension of price increases, tire price performance will tend to be weak in the following May and June.
Change four is the March export refresh high, the follow-up force will be difficult to surpass. Judging from the actual export performance in April, the market feedback is not as good as that in March. The main factors affecting the change are: first, the purchasing capacity under the influence of rising prices was overdrawn in advance; Second, foreign public health events should not be underestimated. Third, due to the blockage of the Suez Canal, exports in April are expected to fall month on month. At the same time, the overall performance will be flat due to the impact of the domestic holiday in May and the weakening of export demand.
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Jinzhou Unical Tyre Co.,Ltd.
Address: No. 27A-301, Baoji Platinum Building, Central South Street, Taihe District, Jinzhou City, Liaoning Province
Hotline: 86-18841677776 86-416-3801508
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