From LANXESS’s 50% to Tire Makers’ 5%: The Rubber Industry Chain Is Experiencing a “Decreasing-Cost Transmission”

Entering March 2026, driven by surging energy prices caused by geopolitical turbulence and the continued rise in the costs of major raw materials such as natural rubber and synthetic rubber, the global rubber and downstream tire industry chain has seen a wave of intensive price increases. From key additive suppliers upstream to tire manufacturers in the midstream, companies are raising prices to pass on mounting cost pressures.

Soaring Costs: Additives Giants Announce Significant Price Hikes

The world-leading specialty chemicals company LANXESSannounced on March 11 that it would immediately raise prices for its functional additives product lines used in tire and specialty rubber manufacturing by as much as 15% to 50%.

LANXESS stated that the price adjustments cover its rubber additives portfolio, with increases varying by product series. In its statement, the company clearly indicated that the move is intended to offset the sharp rise in energy, key raw material, and logistics costs caused by escalating geopolitical tensions.

The Polyplastics–Evonik joint venturerecently announced that it will raise prices for several products starting April 1, 2026. Among them, the rubber processing aid VESTENAMER®will increase by 200 yen/kg (approximately RMB 9 per kg). The adjustment is mainly attributed to the depreciation of the Japanese yen and the continued increase in raw material costs.

Tire Companies Follow with Price Hikes Across Product Lines

Since early March, China’s domestic tire industry has experienced a new round of comprehensive price increases driven by rising costs. The adjustments involve truck and bus radial tires (TBR), passenger car radial tires (PCR), as well as inner tubes and flap products, with most increases ranging from 2% to 5%.

Nearly 20 major tire manufacturers, including Zhongce Rubber, Linglong Tire, Cheng Shin Tire, and Maxxis, have issued price adjustment notices in quick succession. Most of these increases will take effect from mid-to-late March to early April.

Zhongce Rubberannounced that starting March 16, it will raise prices for its loader tires, noting that “the adjustment is far lower than the increase in costs,” and does not rule out further price adjustments in the future.

Maxxisand Wanda Boto Tirehave also decided to raise prices for products such as TBR tiresby 3% to 5%, effective March 16.

Cheng Shin Tireissued a notice stating that starting March 21, prices for all tire categories will increase by 5.5%, with the new pricing determined based on the delivery date.

Meanwhile, Linglong Tire, Aeolus Tire, Doublestar Tire, and Goodyearplan to implement price increases on April 1. Linglong Tire will raise prices for TBR and PCR products in the domestic retail marketby 3%–5%; Aeolus Tire will increase prices for its entire product range by 2%–5%; Doublestar will raise prices for all-steel tiresby 3%–4%; and Goodyearwill implement an average increase of 1%–2%on certain products.

In addition, Guizhou Tirestated in a communication letter that although the company has tried to absorb the impact internally, it cannot fully offset the shock from the raw materials market and will adjust prices for its full product range at an appropriate time. Ningxia Kuncheng Tire (formerly Shenzhou Tire) has also announced that starting March 15, prices for all brands under its portfolio will increase by 2%.

The Dual Squeeze Behind the Price Hikes: Natural Rubber and Oil Prices in Resonance

Many companies explained in detail the inevitability and difficulties behind these price increases in their adjustment notices. The core pressure stems from the dual squeeze of natural rubber and petroleum-based raw materials.

On one hand, due to the seasonal tapping suspension period in major producing regions, the supply of natural rubber has tightened and prices have continued to rise, briefly exceeding RMB 17,000 per tonin March. On the other hand, the recent escalation of geopolitical conflicts in the Middle East has pushed international oil prices sharply higher, directly increasing the costs of synthetic rubber, carbon black, nylon, and various chemical additives. Tire manufacturers are therefore facing surging costs from both sides.

In addition, logistics costs are also rising. Disruptions to navigation through the Strait of Hormuzhave not only pushed up global oil prices but have also affected the stability of some chemical raw material supplies. As noted by Cheng Shin Tire in its notice, suppliers have “not only informed of price increases but also indicated that delivery schedules cannot be clearly confirmed.”

Industry insiders generally believe that if upstream raw material prices remain high, this cost-driven wave of price increases is likely to continue in the short term, and may further pass through to a wider range of end markets.