ore than two-thirds, up to 69%, while other costs account for only 31%. In the breakdown of raw material costs, the cost of rubber raw materials accounts for 50% of the total cost of tire production, of which the cost of natural rubber accounts for about 37%, the cost of synthetic rubber accounts for about 13%, and the cost of raw materials such as cord, carbon black and steel wire accounts for about the total cost of tires. Of 19%.
Natural rubber is made from the latex of natural rubber trees. Because natural rubber trees have extremely high requirements for the natural environment, the countries that can be planted are mainly distributed within 10° north and south latitudes. The planting area is very limited, resulting in relatively scarce natural rubber resources. The rubber production capacity is seriously insufficient, and it is difficult to meet the ever-increasing demand for natural rubber. Therefore, the high dependence on the relatively scarce natural rubber resources in the world has caused the development of the tire industry to be directly affected by natural rubber production capacity and price fluctuations. In addition, because synthetic rubber, carbon black and other raw materials are mainly made from petroleum, and steel wire is obtained from iron ore, the development of the tire industry also has a high degree of dependence on resources such as petroleum and iron ore. Small adjustments in the prices of other resources can cause large fluctuations in the production costs and product prices of the tire industry.