Chinese Tyre Makers Discuss Ballooning Rubber Prices
The China Rubber Industry Association has referred to rising rubber costs as a ‘grim situation’. The CRIA reports that rubber prices, currently approaching RMB 40,000 per ton, have caused tyre production costs to increase by 50 per cent and squeezed profit margins to a record low, with year-on-year profits declining by up to 50 per cent last year. In light of this industry crisis, seven CRIA members met in Beijing on January 13 to discuss possible countermeasures.