Raw material costs for tyre makers are going up, and Michelin is the latest manufacturer to respond by announcing price increases for the European market. Prices will rise by up to eight per cent, depending on product, and will be applied to Michelin’s car, light commercial, truck, earthmover, agricultural and two-wheel segments. The new pricing will be implemented by the end of April.
Yokohama Tire Corporation will increase prices by up to 7 per cent on all of its tyres sold in the US, including consumer, commercial and off-the-road (OTR). The price hike becomes effective 1 April.
The UK economy grew 0.6 per cent in the October-to-December period. Taking the year as a whole, the economy grew 2 per cent, 10 per cent slower than the growth of 2.2 per cent achieved in 2015. Good news, I hear you say. But, as with many things in life, the details tell a more complicated story.
Many sources, such as the BBC, contend that this better-than-expected growth is because of increased consumer spending during the last quarter of the year. However, it is also worth pointing out that UK car production achieved a 17-year high in 2016, according to the latest figures published by SMMT. This comes at the same time that the motor manufacturer’s association reported new car registrations of just under 2.7 million for the year – itself another record. This being the case, it is worth taking a closet look at the figures and the messages give us in the inextricably linked tyre sector as well as the economy as a whole.
Prices for products from Marangoni Industrial Tyres will increase by up to six per cent as of tomorrow. The company states that new pricing has “become necessary” due to the growing cost of raw materials, particularly natural rubber, in recent months, as well as euro weakness against the US dollar.
Sailun is increasing prices of its commercial truck, passenger and light truck tyres by between 5 and 8 per cent in North America. The increase went into effect 1 January 2017.
The leading Taiwanese tyre manufactures are reportedly planning to raise prices by between 8-12 per cent during 2017. According to local news reports, the price hike is a reaction to the jump in synthetic rubber and natural rubber prices.
Rubber prices are expected to rise this year, and in response to the anticipated direction that this commodity and other raw materials will take in 2017, Trelleborg has announced a five per cent price increase for its industrial and construction tyres in Europe. The new pricing takes effect 1 February 2017.
Trelleborg has announced a five per cent price increase on agricultural and forestry tyres in Europe, effective 1 February 2017.
Mitas, part of the Trelleborg Group, has announced a five per cent increase in agricultural tyre prices in Europe. The new prices, which will affect both Mitas and Cultor brand agricultural and light agricultural application tyres, will come into effect on 1 February, 2017. The manufacturer said the rise is “driven by the recent increase in raw material prices.”
Prices for truck and bus tyres sold by Bridgestone Europe rose today, and a new price structure will also apply to car and motorcycle tyres as of 1 January 2017. The average price of Bridgestone and Firestone truck and bus tyres has gone up by one per cent, while passenger car and motorcycle tyre prices will increase by an average of three per cent. The revisions are non-linear and vary across the different product ranges.
Trelleborg is increasing the price of its agricultural and forestry tyres in the UK by 6 per cent. The price rise is set to take effect across the UK effective 1 August 2016.
The euro has lost approximately 19 per cent of its value against the US dollar in the past year, and to compensate for this “unfavourable exchange rate” Alliance Tire Europe has announced price increases of up to five per cent for its products. Increases will apply as of 1 September 2015 and affect all product categories manufactured and sold by the company under Alliance, Galaxy and Primex brand names.
Trelleborg Wheel Systems has announced a seven-to-ten per cent price increase on its tyres for agricultural, forestry and light agricultural applications in Europe.
GRI (Global Rubber Industries), an industrial tyre manufacturer based in Sri Lanka, has announced plans to raise prices by between 8 per cent and 9.5 per cent. According to statement released by the company, the precise price increase depends on which country in the European market and is effective from 1 May 2015.
Marangoni Industrial Tyres has announced an eight per cent increase in the selling price of its tyres from 15 May. Marangoni said the price rises will be applied to markets invoiced in euros. Lorenzo Stringari, Marangoni Industrial Tyres sales director, stated: “So far, we have managed to reduce the negative impact of the US dollar/euro exchange rate, keeping down costs and thus avoiding extra costs for our customers.
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