Negative factors dominate the April tire market may continue to decline

"Entanglement" and "helplessness" once again tell the March tire market, continuous contrarian pressure, dealers said tires are really "injured" ah. Finally, after the first quarter, whether or not a new chapter can be opened in April, the author learned about the sampling of distributors in some regions.

The risk factors affecting the tire market in April are summarized as follows:

In March, natural rubber continued roller coaster-type beating. Taking Yunnan State-run all-latex as an example, this month's high was 15,200 yuan/ton, the lowest point was 14,050 yuan/ton, and the current average price was 14,658 yuan/ton, compared with the average price of 15,416 last month. Yuan/ton, down 5%. In view of the current rubber prices, most tire manufacturers indicated that there is insufficient upward momentum in the latter period and there is no plan to increase raw material inventory. The rubber price will continue to consolidate within a short period of time. Driven in the direction of no main line, manufacturers will still purchase on-demand, with the use of the rhythm. If rubber prices continue to operate weakly, tire prices cannot be kept stable.

The unspoken argument of “looking at rubber prices and betting tires” currently ranks first in the price of tires.

The tepid market for tires in January and February may also be used as an excuse to “provide a curse for the Spring Festival.” Because there are fewer shipments and therefore fewer stocks, the dealer may not be out of line. However, in March, the tire market continued to be dull, but the reality was powerless. Manufacturers no longer gave time buffers to agents. The indicators of “acquisition of goods according to plan” were clear and thorough. It is understood that in order to balance the tasks and complete the quarterly tasks, dealers took this month. The quantity of goods is greater than the sum of the previous two months. It is no wonder that the market is so bad. Where are the tire manufacturers' inventory?

Most of the tires are from the factory temporarily residing to the dealer's warehouse, the manufacturers are in full swing shipments, just to avoid their own risks, in the "transfer of tires" before they are really digested without deterrence can not be underestimated.

"Inventory devaluation, the money shrinks in their own hands, this time not dare to make big bets." There is such a saying that is real and real. Continue to wait and see is the current attitude of dealers to the market. After the year, most businesses focused on pre-digested stocks, and the sporadic best-selling model was replenished. Due to the lack of confidence in the market outlook, the large quantities of regular purchases have not yet commenced.

“Which is in the eyes and the line is quiet”, this way you have to wait for the rest, ferment, continue to ferment, and ultimately challenge the market's tolerance.

After the end of the two sessions, the “opening up of infrastructure” was awaited, but is it in harmony with the current downturn in real estate and the slowdown in investment in fixed assets? Whether the factors affecting the overall improvement of the tire industry can truly blossom, it is still not worthwhile. In conclusion, it is expected that its positive energy will penetrate and carry forward as soon as possible.

Although this may seem to have a long-term impact, the objective reason for the bad demand is also this.

In short, bearish factors still dominate the market in April, and tire prices may continue to decline in the short term. If the rigid demand driven by infrastructure has increased significantly, other factors “that are not the case”.

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