Price Rises for Tyres Coming

October 12, 2010 at 4:24 am 4 comments

The cost of natural rubber has reached an all time high of over US$3/lb; tyre prices in Europe are to rise by around 5%, so it appears inevitable that, after a due delay due to shipping from overseas, (all tyres are now imported) tyre prices will rise in Australia by around the same percentage.

Natural rubber is still used in the carcase and sidewalls of a passenger tyre, and a much greater percentage in heavy vehicle tyres.

Entry filed under: Blogroll, Tyre Industry. Tags: , .

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4 Comments Add your own

  • 1. Marty  |  October 30, 2010 at 12:00 pm

    tough

    Reply
  • 2. David  |  November 3, 2010 at 8:17 am

    The higher price of natural rubber is apparently playing havoc with the profits of the major tyre companies in the current quarter. Companies based in the U.S.A. have to report their profitability quarterly, so the information is up to date.

    The reason for the high natural rubber price is a pretty basic one. A large slice of Thailand is under water, flood stricken, pouring rain, very wet. So much so that the rubber tappers, who collect the sap from the rubber tree “hevea brasiliensis”, have not been able to work. The supply/ demand equation comes into play. No supply!

    Reply
  • 3. Materials Handling  |  January 31, 2011 at 9:31 am

    The price hike is not just present in the tire industry. All commodities are sold with higher mark-ups. Unless the economy recovers faster, we have to be wiser with our spending and adjust our budget accordingly. Businesses, especially those involved in materials handling, will also have to make tough decisions and be innovative in minimizing operating and manufacturing costs.

    Reply
  • 4. David  |  February 15, 2011 at 4:35 am

    The second round of price rises has commenced overseas, quite widely, in all markets, due to the skyrocketing cost of natural rubber, which is now over US $5. Rises are ranging between 7 and 12%, as manufacturers cease trying to absorb these raw material price increases.

    Reply

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