On September 26, 2009, US President Barack Obama’s policy of imposing a special tariff of 35% on some imported tires in China officially came into effect. US tire prices soared and Chinese tire companies’ exports were blocked.
Loss outside the embankment, make up inside the embankment. Many people are worried about whether domestic tire prices will rise under the impact of the "tire special security case."
US light tires rose 10% to 28%
American consumers are paying for Obama’s decision.
Due to the temporary tariffs imposed on Chinese low-end tires, recently, the price of light tires in the US has generally risen by 10% to 28%. This has led many American consumers who are used to buying low-end Chinese tires to be forced to pay higher prices or have to choose Expensive top tires. It is reported that the price of low-end tires imported from China is usually 50 to 60 US dollars each before the price increase, while the top tires are priced at 200 to 400 US dollars each.
Chinese tire companies, which are at the forefront of the turbulence, first responded to the US “tire special security case†by transferring orders. According to the relevant personage of Kumho Tire Co., Ltd., Kumho Tire has three major factories in Nanjing, Tianjin and Changchun, and most of the products are supplied to the international market. Three months ago, they anticipated that the United States might levy tariffs on Chinese-produced tires, so they have already moved orders from the United States to factories in South Korea and Vietnam.
Secondly, in order not to abandon the U.S. market and not cause losses at the same time, there are already many tire companies in the country that have issued signals of “collective price increases†in the United States. Guangzhou Huanan Rubber Tyre Co., Ltd., which has a share of more than 50% of its products exported to the United States, immediately announced that it would increase the price of its exported US products by 35%.
Will price wars burn into the Chinese market?
Domestic prices are unlikely
Regarding whether the domestic tire companies in the United States “collective price increase†will affect the domestic tire market price, this reporter visited some tire companies, industry representatives and tire dealers.
"Now many tire companies in China are affected." A person in charge of the Political Propaganda Department of the Qingdao Double Star Tire Group said that the United States' "tire special protection case" for China has caused many export companies to suffer severe damages, and has therefore raised prices in the United States. “The price increase is for tires exported to the United States.†The source said that after the tire manufacturers' exports are blocked, the future will be mainly based on the domestic market, and the domestic tire market will inevitably intensify, bringing some uncertainties to the price trend. “We have not raised the prices of tires yet.†Ms. Chen, sales manager of Nanjing Jiabao Tyre Co., Ltd. told reporters that the company’s tire inventory is very large and the market competition is quite fierce. “On the market, various brands and various There are a lot of tires in the specification, and the entire market is in a state of oversupply.If the “tire special security case†is followed, domestic tires are blocked in the US market and then moved to the domestic market, then the sales pressure of tire companies will undoubtedly be passed on to our distributors. On the body, the sales target for us will be even greater. Therefore, given the current situation, it seems unlikely that domestic tire prices will increase."
Han Guang, sales manager of Nanjing Angao Tire Co., Ltd., also stated that “not that we don’t want to go up, but that prices simply don’t rise up.†Under the condition that the entire tire market exceeds demand, all parties are very sensitive to prices, and the profits are higher. The lower it comes. Faced with the trend of rising prices of original tires, local tire sellers dare not rush to increase their prices, sticking to the rules of “selling one to count oneâ€.
Zhang Hongmin, chairman of the Shandong Rubber Industry Association, believes that tire companies cannot raise prices. The “tire special protection case†only affects the sales of tire companies and will not affect the price of tires. In particular, the price of domestic sales of tires will not increase. "Because the United States raises tariffs, the price of Chinese tires has risen a lot in the United States. If prices are raised again, then the price of Chinese tires will be even higher in the United States, and the sales volume will be reduced, so there is no possibility of raising prices." Zhang Hongmin told reporters.