NEWS CENTER

INDUSTRY NEWS | SOARING RAW MATERIAL PRICES COUPLED WITH CURRENCY APPRECIATION: A PRICE HIKE WAVE IS IMMINENT FOR CHINESE TIRES

Release Time:

Mar 02,2026

The global tire supply chain is currently experiencing another round of significant fluctuations. Squeezed by both the continued rise in natural rubber prices and the strengthening of the RMB exchange rate, China's traditional price advantage in tire exports is facing severe challenges. Currently, several major domestic tire manufacturers are discussing price adjustment plans, and there is a trend towards price increases for exported tires.

I. Uncontrolled Costs: Natural Rubber Enters a "High-Price Cycle"

According to the latest market monitoring, major global natural rubber producing areas entered their seasonal off-season in the first quarter of 2026, leading to a continued contraction in supply. As of early March, the average price of natural rubber in the domestic market had steadily climbed above 17,000 yuan/ton, with some contracts even reaching a high of 17,400 yuan.
Raw Material Costs: As the raw material with the highest cost in tire production (approximately 40%-50%), the price increase of rubber directly eroded factory profit margins.

Other Additives: The prices of synthetic rubber and carbon black were also supported by upstream petrochemical costs, showing a fluctuating upward trend.

II. Exchange Rate Rebound: Further Pressure on Export Profits

At the beginning of 2026, the central parity rate of the RMB against the US dollar showed a strengthening trend. For export-oriented tire companies, RMB appreciation means:

Foreign Exchange Losses: The same US dollar order yields less RMB in return.

Decreased Competitiveness: Passively pushing up overseas landed prices weakens the price advantage of Chinese tires relative to Southeast Asia and other regions.

In light of the current situation, we strongly advise our distributors and end customers to prepare their inventory plans in advance.

 

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