Tire Prices to Rise Again in October 2025

In October 2025, the Chinese tire market was swept by a surging wave of price increases. From industry leader Zhongce Rubber to regional player Henan Tianji Tire, over a dozen companies issued price adjustment notices, followed closely by renowned brands like Maxxis and Sailun. Price increases generally ranged from 2% to 5%, with strong expectations for subsequent price adjustments for some products.

The core driver of this price surge was a collective surge in upstream raw material prices, the impact of which was cascading throughout the supply chain, reshaping the tire industry's market landscape.

The widespread surge in raw material prices was the direct trigger for this round of price increases. Natural rubber, a core raw material in tire manufacturing, soared to 15,885 yuan per ton in early September, a nearly 1,400 yuan increase in just a few days, and this upward trend continued in October.

Price fluctuations in rubber raw materials, which account for over 50% of tire costs, are a significant concern for tire manufacturers. More seriously, the price increase isn't just a random fluctuation in a single raw material: Bekaert, the global steel cord giant, announced a 300 yuan per ton price increase and suspended orders at the end of August, further exacerbating the tight supply of steel cord, a material used in tire carcasses.

Carbon black prices have stabilized and rebounded since late July, continuing their upward trend driven by demand during the traditional peak season. The three core raw materials account for 63% of tire costs, and the resulting simultaneous price increases are creating cost pressures far exceeding companies' internal capacity to absorb.

The market, under the wave of price increases, exhibits the dual characteristics of "cost pressure and value return." For companies, price increases are a rational and necessary survival choice: For example, the raw material cost of a 12R22.5 tire alone has increased by approximately 55 yuan per tire compared to the previous price increase.

Zhongce Rubber stated in its price adjustment notice that "the adjustment is far less than the cost increase," setting the stage for further price adjustments.

However, unlike previous rounds, this round of price increases reveals positive signals of industry transformation. The tire industry, once mired in price wars, is now seeing leading companies take the lead in raising prices, with positive market acceptance. This demonstrates that brand value and product quality are replacing low price as the core of competition.

This shift is particularly evident among companies with a global presence. Sailun Tire has laid the groundwork for a new plant in Egypt, and Zhongce Rubber is ramping up production in Southeast Asia. These overseas bases not only circumvent trade barriers but also provide a profit buffer against domestic price increases.

The downstream supply chain is bearing the brunt of the price increase transmission. At the dealership level, the contradiction between high inventory and weak demand has not yet eased, yet they are forced to face the reality of rising procurement costs. Some dealers worry that price increases will cause customers to switch to brands that haven't adjusted, posing a dilemma: either lose money if they don't, or lose customers if they do.

In the consumer market, passenger car and commercial vehicle owners are feeling the effects most directly. Logistics companies and fleet operators are experiencing significant increases in tire procurement costs. Against a backdrop of pressure on transportation market profits, these costs may be indirectly passed on to consumer goods prices.

However, it's worth noting that the recovery in demand driven by the domestic auto trade-in policy and the growth in overseas orders have provided some room for price increases. Companies like General Shares are even facing full order books and operating at full capacity.

Looking ahead, the tire industry is facing both cost pressures and a window of opportunity for profit recovery. Data from Baichuan Yingfu shows that prices of raw materials like natural rubber have fallen by 9% to 15% since the beginning of the year. Companies' low-priced inventories are still providing a buffer, and price increases are expected to translate directly into higher profits.

However, uncertainty remains regarding raw material prices. Factors such as the climate in major producing areas and the stability of the global supply chain could trigger further fluctuations. For the industry, this wave of price increases is both a passive response to cost pressures and an opportunity to move away from internal competition and toward value-based competition.