Conti’s European CV tyre prices to rise in May

According to Continental, the cost of natural rubber rose fourfold between January 2009 and February 2011 to a record high of more than US$5.60 per kilogram and the current yearly average price has remained at $5.40. Due to this ongoing increase and the rise in other raw material costs, the tyre maker will increase its prices for commercial vehicle tyres in Europe on May 1.

“In view of the rocketing costs in the acquisition of natural rubber, we have no choice but to raise the prices of our tyres,” said Herbert Mensching, Continental’s head of marketing and sales for commercial vehicle tyres in the EMEA region. Prices for Continental brand truck tyres will increase six per cent while the company’s Uniroyal and Semperit brands face price adjustments of up to ten per cent. Prices for Barum and Matador brands – brands that are most prevalent in Eastern Europe – will rise by up to 12 per cent on May 1. Explaining this double-digit increase, Continental comments that these so far only “minor price adjustments” have been made for these two brands.

“In our first price adjustment of seven per cent in February, we passed on the enormous cost pressure from natural rubber only partially to retail and trade customers. A renewed increase at the present time has become inevitable to cover the follow-on effect from the beginning of the year,” Mensching stressed. “If the price of natural rubber remains at a high level, we will not be able to avoid further price increases after that announced for May 1.” Mensching also pointed out that fifteen times more natural rubber is used in an average truck tyre than in the typical passenger car tyre: “For this reason, you cannot compare the price adjustment for both product ranges directly.”