Aufine Group Expects “Big Increase” in Tyre Prices

Aufine Group Company Ltd has warned customers that record high natural rubber costs mean it will have to implement significant prices increases soon. Writing in a customer newsletter, company representatives blamed the price spike on the “heavy drought” experienced in south China and other parts of the region in Asia: “As a result, the output of natural rubber is reducing sharply, which [has] caused the price of current rubber and rubber futures [to] have increased crazily…We estimate a big increase on tyre price will come soon.”

The latest announcement from Aufine follows a similar warning made in early February 2010: “From the end of 2009, the price of natural rubber has increased sharply. As the natural rubber is the most important complication of tyre cost, the pressure of cost makes all tyre manufacturers increase price at the end of 2009. Now, the influence of price increasing is continue, many manufacturers intentioned to increase price again to reduce pressure of cost…Aufine group also have to adjust the prices after the Spring  Festival for all the shipments. But we will always give the most competitive prices for our valued customers.”

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