Since 2008, the production of tire raw materials prices continue to rise substantially in 2007 on the basis of, coupled with the country to implement tight monetary policy, leading to steel procurement settlement, bring enormous cost and financial pressure to the vast number of tire production enterprise. The tire major raw material such as natural rubber, synthetic rubber, steel wire, steel cord, all kinds of chemical materials, such as coal prices hit a record high, frequency, and resources are extremely nervous. Import 20# standard in 2007 the average price of US $2051 / ton, at the beginning of this year rose to 2200 U. S. dollars / ton, 4 at the end of the price of $2800 / ton, in June 18th the price of 3280 yuan / ton, the current ratio at the beginning of the year prices rose more than 49%; the domestic 5# rubber in 2007 the average purchase price of 19341 yuan / ton, the beginning of the year rose to 20400 yuan / ton, 4 at the end of the price reached 23000 yuan / ton, to June 18th the price of 28000 yuan / ton, the current ratio at the beginning of the year prices rose more than 37%; the beginning of chlorinated butyl rubber in 2007 the average price and 08 years for the price of 48800 yuan / ton, 4 at the end of the price rose to 79000 yuan / ton, to June 18th the price of 100000 yuan at present / ton, compared with the beginning of the year prices rose more than 104%; tempering steel in 2007 the average price of 6000 yuan / ton, the beginning of the year rose to 6700 yuan / ton, 4 at the end of the price reached 8000 yuan / ton, to June 18th the price of 10500 yuan / ton, compared with the beginning of the year prices rose more than 56%; to June 18th various accessories price than the beginning of the year rose more than 30%; the current raw material prices and 07 fold more comprehensive price rate of more than 40%, resulting in cost tire sales growth of more than 25% direct.