The price of zinc oxide powder has risen sharply for tire companies to raise prices again

The price of zinc oxide powder has risen sharply for tire companies to raise prices again

In the first half of the year, due to the continuous increase in the price of raw materials such as zinc oxide, although the major tire companies generally showed a boom in production and sales, many tire companies have suffered a decline in performance because their prices cannot cover costs. This has also directly led to a new round of price increases in tire companies recently. According to media reports, nearly 70 tire companies have announced price increases, and some tire companies have recently announced price increases twice in a row.

In this regard, market participants explained that it can be seen from the mid-year financial reports of major tire companies that global tire companies are now facing the difficulty of rising costs. After doing everything possible to reduce costs, it is still impossible to alleviate the huge pressure on the business survival caused by rising costs. Rising prices became the only way out.

According to relevant agencies, the tire sector accounts for more than half of the zinc oxide order demand, so the increase in the price of zinc oxide has also become one of the reasons for the huge increase in the cost of tire companies. As shown in the figure above, the price of zinc oxide has continued to rise since October 2016, and the increase has been particularly strong since June this year.