Over 100 tire companies issue more than 100 price hike letters within the year; several listed tire firms see Q3 profit decline

Since March, more than 100 tire companies have successively issued over 100 price increase letters, with single-round increases generally ranging from 2% to 5%. Tire companies have already experienced four rounds of concentrated price hikes this year. According to the third-quarter financial reports disclosed by several listed tire companies, Sailun Tire's net profit attributable to shareholders in Q3 was 552 million yuan; Zhongce Rubber was 413 million yuan; Sentury Tire was 104 million yuan; Triangle Tire's single-quarter profit was one-tenth of the same period last year. Linglong Tire posted a loss of 37 million yuan in Q3, compared with a profit of over 300 million yuan in the same period last year; Aeolus Tyre posted a single-quarter loss of 24 million yuan, compared with a profit of approximately 120 million yuan in the same period last year. Based on disclosed operating data, the year-on-year increase in comprehensive procurement prices for major raw materials among leading enterprises generally ranged from 15% to 21%. Raw materials account for over 70% of tire production costs, with the three core raw materials—natural rubber, synthetic rubber, and carbon black—together accounting for more than 60%. Natural rubber and synthetic rubber combined account for 43% and 45% of raw material costs for semi-steel tires and all-steel tires, respectively. In the third quarter, Zhongce Rubber's average selling price for tire products increased by 0.71% year-on-year, while the comprehensive procurement price of major raw materials rose by 20.76%; Linglong Tire's per-unit price increased by 4.4% year-on-year, with raw material costs rising by 15.17%. Data from the China Association of Automobile Manufacturers shows that passenger vehicle production in the first three quarters declined by 6% year-on-year. In July, the EU issued a final anti-dumping ruling on Chinese passenger car and light truck tires, with tax rates for Chinese companies reaching as high as 45.3%; in October, the EU disclosed the pre-final results of its anti-subsidy investigation, which, when combined with anti-dumping duties, resulted in a total "double anti" tax rate range of 27.5% to 57.09%. Data from Longzhong Information shows that domestic exports of passenger car tires to the EU in the first three quarters declined by 46.32% year-on-year. Regarding exchange rate fluctuations, Linglong Tire incurred exchange losses of approximately 437 million yuan in the first three quarters, compared with exchange gains of 622 million yuan in the same period last year. Sailun Tire's financial expenses in the first three quarters were 648 million yuan, compared with 238 million yuan in the same period last year. In the third quarter, Aeolus Tyre recognized an investment loss of 22.5634 million yuan from its associate company Prometeon Tyre Group S.r.l; excluding this factor, the total profit for the quarter was negative 3.8246 million yuan. Sailun Tire supplies overseas markets through bases in Vietnam and Cambodia, while Linglong Tire is shifting European customer orders to its Serbian factory. Sailun Tire is responding to rising raw material costs through long-term procurement agreements, product price adjustments, and increasing the proportion of high-value-added tires; companies such as Zhongce Rubber and Sentury Tire are using commodity futures hedging to lock in部分 raw material costs.