Copper and natural rubber prices skyrocketing, the Tire Valve core enterprises swallow. The valve core products into the New Year, 5% price increase, but the 2011 copper and natural rubber prices rose about 20 percent, the price performance of the valve core has been far behind in the speed of the main raw material prices. A price adjustment of the valve core is inevitable, expected in late March or early April, the price increase of 5% to 10%.
First, copper and natural rubber at high prices Forced valve core prices. The main raw material of the valve core, copper and rubber, copper accounted for about 60% the cost of the valve core, rubber accounted for about 20% the cost of the valve core. World copper prices since June last year, has jumped more than 60%. In early February this year exceeded $ 100,000 / ton mark, and has been up to new heights. Relative to the beginning of last year, copper prices rose more than 100%, the rubber price increases are more than 100%. Since last year, valve core three price increases, price increase in 15% to 20%, but much lower than the copper and rubber and other raw materials price increase. At current prices, the valve core enterprises are at a loss. The valve core enterprise alone to tap the potential to absorb the cost has been powerless and can only choose to transfer downstream.
Second, the increase in labor costs to promote the valve core prices up. The valve core is labor-intensive industries, labor costs accounted for 20% of the cost of the valve core. Of the valve core enterprises are mainly located in Ningbo, Jiangyin, Shanghai, Hangzhou and Qingdao areas, where relatively high wages. Early last year to implement the new labor contract law, labor costs has been greatly improved. After the Spring Festival this year, the valve core employees wages generally rose one percent to two percent. This valve is also a factor in the mouth, core prices.
Third, the valve core demand to support prices. The valve core is the key auto parts. In 2009 and 2010, China’s auto market growth of the “blowout” This car production in one or two years after 2023 will become consumers of the valve core. Recovery in the world automobile industry, GM, Ford and other world auto giants substantial increase in the sales situation, China’s automobile sales in January to continue to improve, people drive and purchase intention of growth, human security means to increase, which increase the demand on the valve core. provide support for the valve core prices.
The valve core production accounts for 75 percent of world production, half of the valve core in China’s total output controlled by several major manufacturers. The price of these manufacturers has become the benchmark once the prices of other companies quickly followed up. Now the core enterprise of China’s large-scale valve prices intention is obvious, there are individual enterprises has issued notice of price increases. Just consider just mentioned the January price, separated by a short time, so most of the valve core companies consider options at the end of the first quarter or early in the second quarter.