After a general price hike in Aug., a new round of price hike occurs in Sept. again, which affected the supply in Yunnan province.
Nearly 100 tire producers lifted the prices in Sept. by 2% to 8%.
Besides raw material market lifted prices, many tire producers stopped production due to the environmental protection supervision by the central government.
In Shandong, the proarea, the supervision caused significant impact on local producers.
Some renowned large tire producers were forced to stop production and consolidate, while many small producers were even closed down.
Increasingly severe conflict between supply and demand is a key reason for this month’s price hike.
Therefore, tire distributors in Yunan province almost have no inventory because of short supply.
Over the past two months, the average tire price increased more than 5% in Yunnan, and the issue is we cannot find suppliers, said a local tire distributor.
An experienced distributor said price stability is vital for distributors’ profitability.
