Nexen Tire has announced that prices for its tyres will increase in all European markets as of 1 June. The Korean manufacturer’s range of passenger car tyres – summer and all-season – will rise linearly by four per cent.
In the last few weeks, Apollo has initiated production at its new Hungary tyre factory and launched a brand new European truck tyre range (see Company News section pages 32 – 24); Doublestar has confirmed that it is the only remaining bidder in the race for 42 per cent of Kumho Tire (see pages 36 – 37); and as we went to press, Finnish tyre maker Nokian announced that it will build its third production plant, this time in the USA. All this points to what we might call a re-globalisation trend. Rather than businesses from the large so-called developed nations expanding around the globe, this second wave of international expansion sees the roles reversing to some extent. While before the Western nations were looking to invest in fast-growing “emerging” economies, now the proverbial shoe is on the other foot and large companies in what used to be called the BRIC nations are investing in more developed tyre markets.
Noting that the silicones industry is “going through a period of transformation, with structural and regulatory changes being announced almost daily,” Bluestar Silicones has announced price increases from ten per cent upwards. The new pricing will be implemented from the second quarter of this year onward.
Global rubber output is expected to climb to 12.9 million tons in 2017 up from last year’s 12.4 million tons, the International Rubber Study Group (IRSG) said.
Marangoni’s Direct Retreading and Services business has announced it will raise product prices in Italy and Europe between March and April.
Camso has announced a price increase averaging 8 per cent for all of its materials handling and construction tyres. The price increases, which come into effect on 1 April, will affect all aftermarket customers globally, but will vary depending on product line and regions. Camso attributes the increase to rising costs of raw materials.
Prices for Apollo and Vredestein brand tyres are going up, but not yet. Apollo Vredestein has announced its intention to increase prices by up to eight per cent on 1 May 2017. Exact increases for each product will depend upon structural and exchange rate variations, and the changes will affect the passenger car, light truck, agricultural and industrial tyre segments. The company considers the price increase to be “in line” with the rising cost of raw materials it has experienced in all markets.
Korean tyre manufacturer Nexen has announced that it will raise prices by up to 9 per cent across its different product segments and dimensions.
Bridgestone Europe has announced an average price increase of 8 per cent in its car, van, SUV and motorcycle ranges. This will affect all of Bridgestone’s brands and will come into effect on 1 April, 2017 for summer tyres and 1 May, 2017 for winter tyres.
Almost 10 years on from the trauma of the global ‘credit crunch’ and we’re still not entirely free of the economic aftershock. The resulting times of austerity have made for tough competition for every pound in the motorist’s pocket – and the forecasts suggest even more tough times ahead. In a trade as utterly international as the tyre industry the outcome of the 23 June referendum on the EU was always going to have profound effects – and the marginal victory for the Brexit side predictably has caused dramatic weakening of the pound against both the Euro and the dollar.
Prices for rubber retreading materials sold by Marangoni’s Retreading Systems division will increase by four to eight per cent, depending on product category, in all European markets invoiced in euros. Prices will also rise in non-euro countries such as the UK, however at a different rate. The new price structure will be implemented this month.
Pirelli is raising its prices “up to 9 per cent” in all European and North American markets for car, light truck and moto tyres of all product ranges (summer, all-season, winter) and across all group brands.
The list of tyre makers intending to implement price increases in the coming time continues to grow. Two further manufacturers have announced price rises in the North American market: On 1 April, Kumho Tire USA will raise the prices for its car, light commercial and truck tyres by up to eight per cent. Toyo Tires USA is looking to lift prices for its car, light commercial and truck tyres by seven per cent.
After a period of relatively stable and low raw material prices, the wheel and tyre industry is now experiencing extensive increases in the cost of both rubber and steel. All major tyre manufacturers have already announced price increases, and although STARCO states it has fought hard to mitigate these increases, it now finds itself in a position where it must pass some of this additional cost on to its customers. This price increase will affect all STARCO market segments.
Bridgestone Americas Tire Operations intends to raise prices for car, light truck, truck/bus, OTR and agricultural tyres, as well as retread products and tubes. The new pricing for North America will take effect 1 January and will see products become up to eight per cent more expensive.
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