Since March, numerous tire manufacturers have successively announced price increases, with price hikes spreading across the entire tire industry.

Rising upstream costs have been the primary driver behind this round of tire price hikes. On March 17, a representative from a tire manufacturer confirmed that tire manufacturers have generally raised prices recently due to rising costs of raw materials such as synthetic rubber. As the tire industry is highly competitive, companies have different pricing policies for different product types, so not all products will necessarily see price increases; specific product prices should be confirmed based on the latest data.

Based on an analysis of price increase notices issued by tire companies, this round of price hikes covers various categories including radial tires, bias-ply tires, inner tubes, and OTR tires, with increases generally ranging from 2% to 5%. Regarding the reasons for the increases, several tire companies stated in their notices that due to changes in the international situation and market conditions, prices for various raw materials have continued to rise, leading to a steady increase in the company’s manufacturing costs.

Some tire manufacturers further indicated in their price increase notices that, depending on the trajectory of raw material price increases, they do not rule out the possibility of further price adjustments in the future. For example, Shuangqian Tire Group Co., Ltd. issued a price increase notice stating that due to the recent sustained and significant rise in prices of key raw materials such as natural rubber and synthetic rubber, tire production costs have been continuously rising. Effective March 20, 2026, the list prices for the company’s tire products (including TBR, PCR, OTR, and bias-ply tire series) will be increased by 2%, with the latest price list serving as the definitive reference. This price adjustment falls far short of offsetting the cost increases, and further adjustments will be made as appropriate based on future fluctuations in raw material prices.

The rising cost of raw materials in the tire industry has been evident for some time. It is reported that starting March 15, Cabot China, a global carbon black giant, will raise the sales prices of all specialty carbon black products manufactured in China by 1,800 yuan per ton. This marks the second time this year that Cabot China has issued a price increase notice for carbon black products.

Raw materials account for 70% to 80% of the production costs of radial tires. The collective rise in prices of key raw materials—including natural rubber, synthetic rubber, carbon black, auxiliary materials and additives, and steel cord—has become the direct driver behind the price increases. On one hand, the main natural rubber-producing regions in Southeast Asia have entered their traditional off-season, with tightening supply driving rubber prices higher month-over-month; on the other hand, geopolitical conflicts in the Middle East have pushed up international oil prices, leading to significant increases in the prices of synthetic rubber and carbon black, with some auxiliary materials seeing price hikes of over 20%.

The cumulative impact of these multiple raw material price hikes has plunged tire manufacturers into a “cost inversion” dilemma, making price increases a reluctant choice for companies.

However, in terms of price pass-through, it remains to be seen whether these increases can be successfully implemented. As leading companies expand their overseas production capacity and industry concentration increases, their bargaining power and ability to pass on costs have strengthened.

Leveraging their brand and scale advantages, leading companies are generally able to successfully implement price hikes. In contrast, small and medium-sized brands, in an effort to maintain market share, are likely to absorb the costs internally, making it difficult for price increases to take effect. Additionally, while commercial vehicle tires benefit from better cost pass-through due to the recovery of downstream industries, the effect is limited for passenger car tires, and channel inventories will further buffer and delay the transmission of price increases to the end market.

It is worth noting that, in addition to price increases, many tire manufacturers are also responding to rising cost pressures by engaging in raw material futures hedging.

As an integrated internet platform providing benchmark prices, on March 19, the Sunsirs benchmark price for butadiene rubber stood at 15,860.00 RMB/ton, representing an increase of 21.91% compared to the beginning of the month (13,010.00 RMB/ton).

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