Rubber prices have reached a nine-year high, with the main contract on the Shanghai Futures Exchange closing at ¥20 145 per ton on October 8. This represents a cumulative increase of over 28% since the beginning of the year. Natural rubber, synthetic rubber, and carbon black account for more than 70% of tire production costs.
Since September, more than 60 tire manufacturers have issued over 70 price increase notices. These adjustments cover all product categories, including all-steel, semi-steel, and engineering tires, with price hikes typically ranging from 2% to 5%. Manufacturers report that carbon black prices have risen by over 75%, while synthetic rubber and chemical additives have increased by 15% to 20%.
To manage rising costs, companies have shifted from quarterly production planning to order-based scheduling. Firms are also using futures market hedging to lock in raw material costs. Additionally, manufacturers are focusing on the high-end market by developing tires specifically for electric vehicles, aiming to offset cost volatility through increased product value and technological differentiation.
