WHY DOES TIRE PRICE KEEP INCREASING?
Raw materials & RMB appreciation:
1>. Natural Rubber (NR): the percentage of NR in a turck tire is about 34%, the most important raw material of tire industry, the total increase till now is about 25%
2>. Carbon Black: Carbon Black is one of the most important raw materials, the total increase till now is over 30% as the limited production in winter season.
3>. Synthetic ploymer: the percentage of Synthetic ploymers in a truck tire is about 11%
3>. RMB/USD exchange rate: from June till now, the appreciation of RMB is over 8%.
Another issue influence the DDP prices is about the sea freight, the current shipment spaces are very tight, everyone have to book the shipping spaces at least 3 three weeks earlier and from April till now, each contaienr freight is about 2,000 USD higher which make the tire price increase about 7-10 USD.
But we NAMA is always produce the quality tires to our customers, we have shipped our tires to customers in CA, FL, NY, IL with stable volume monthly, considering the quality and prices, our tires will be the most cost-efficient tire.