Raw Materials
Hankook Tire America , which previously announced it would raise prices on all consumer and commercial tyres effective with shipments on 1 November, has postponed the increase until 1 December due to “our current supply difficulty,” reports Tire Review.
Record quarterly sales in the emerging markets of Korea, China and Hungary helped Hankook achieve growth in sales following the slight downturn in 2010’s second quarter, though year-on-year operating profit remained 40.6 per cent down on the Korean manufacturer’s 2009 results. Sales topped 1.5 trillion South Korean won (£840 million), recording 7.1 per cent year-on-year increase. The company’s third quarter operating profit was KRW163.4 billion (£91.5 million), 8 per cent down on the second quarter, where rising raw materials costs have continued to be a factor. Hankook stated it aims to achieve a sales target that exceeds KRW5 trillion (£2.8 billion) this year.
Yokohama has announced that it will raise its North American passenger and light truck tyre prices by 8 per cent on 1 December. The increasing raw materials, manufacturing and logistics costs are cited as the reasons behind the price hike.
Automotive Tyre Manufacturers’ Association (Atma) reportedly sought suspension of futures trading in natural rubber (NR) on 20 October. According to India’s Business Standard newspaper Rajiv Budhraja, director general, ATMA wrote to the Forward Markets Commission (FMC) and the Rubber Board after rubber futures went up by 5 rupees for the November contract in one day reaching 191 rupees/kg from 186/kg earlier. By 20 October NR futures are said to have risen to 200 rupees/kg.
Nankang Rubber Tire Corp., Ltd will increase prices on all its Nankang branded product lines by up to 7 per cent, the company told Tyres & Accessories in a statement dated 20 October 2010. The price hike is scheduled to take effect 1 November 2010.
Continental AG notes the price of natural rubber has reached “well over” US$3 per kilogram, a level it calls a historic high for the commodity. In order to compensate for this, the company plans to increase prices for its replacement market summer tyres throughout Europe by an average of five per cent. The price increase will apply to all Continental passenger car tyre brands within the region.
Prices for Hankook Tire America’s passenger car, light truck and medium truck tyres will increase by up to 6.5 per cent on November 1, 2010. The company reports that rising energy, raw materials and transportation costs have necessitated this price adjustment.
Following his election as president of the Imported Tyre Manufacturers Association (ITMA) earlier this year, Yokohama HPT managing director David Seward has cast his vision for the future of ITMA. Entitled “The Rebirth of ITMA”, Seward shared this with Tyres & Accessories and we have published it in its entirety both online at tyrepress.com and in the print magazine. One of the key developments will see the association address forthcoming legislative and market challenges by improving relationships with other industry bodies and association has reportedly has already taked on specialist staff (including a Brussels-based technical consultant) to assist with this. Here’s the statement:
"Without a shadow of doubt, the tyre industry is facing a number of significant challenges over the coming years. Whether it is the introduction of mandatory TPMS systems on new vehicles, tyre labelling regulations or other new technical hurdles and challenges, all tyre manufacturers around the globe must have access to accurate and timely information. Without the knowledge or the impetus to act upon any impending legislative changes, products will become non-compliant and made obsolete in an increasingly short timeframe. Manufacturers, importers, wholesalers and retailers operating in an already competitive market simply cannot afford to let this happen.
Bridgestone Europe has released the latest edition of its environmental report. The document, titled ‘Environmental Commitment and Performance’, updates the 2009 version and adds content on the upcoming European tyre labelling legislation, Bridgestone’s new eco-oriented Ecopia tyre range and the company’s environment-related activities in the community.
In his keynote speech at the Tire Society annual conference yesterday in Akron, Hankook Tire Co. president and CEO Seung Hwa Suh called on the global tyre industry to pull together to improve consumer tyre education, reports Tire Review. And Suh warned that tyre-makers needed to be more mindful of their impact on the environment. Suh’s comments came on the first day of the 29th annual Tire Society Annual Meeting and Conference on Tire Science and Technology.
Calling it the worst natural rubber shortage in years, industry analysts expect record shortages to continue into next year, according to reports. Heavy demand by tyre-makers around the globe coupled with a combination of drought and heavy rains in plantation areas has sharply reduced output and inventories of natural rubber, according to Bloomberg, with analysts saying natural rubber production will continue to lag for the next two years. What that means is further increases in natural rubber costs to tyre-makers, and higher finished good prices for tyre dealers and consumers.
Major American tyre-makers, Goodyear and Cooper have announced that they will raise North American retail prices by up to 6.5 per cent, tracking the continuing rise of raw material costs. Spokespeople for both companies told Bloomberg today that following the price rises implemented in June, materials such as rubber have continued to rise, making further hikes necessary.
Germany’s Evonik Industries has decided to divest its carbon blacks business. This divestment, claims Evonik Executive Board chairman Klaus Engel, provides “the best basis for sustained investment in carbon blacks, new growth prospects and for securing future-oriented jobs in the long-term.” Engel also states that the company’s declared aim in divesting the business is to find a solution “that is equally convincing for customers, employees and business partners.”
The consolidation of Trelleborg’s solid industrial tyre capacity in Sri Lanka has taken a further step forward with the opening of the enlarged Trelleborg Wheel Systems plant outside the city of Colombo. The company estimates that approximately 80 per cent of its total global solid industrial tyre production now is now carried out in Sri Lanka, a country it says is a “natural location” for it to consolidate production as it has an “excellent” raw materials infrastructure.
Goodyear has revealed that it will raise its US consumer tyre prices by up to 6 per cent on 1 October due to the persistent rise in raw materials costs. The increase will, according to US sources, affect all of the company’s brands, including Goodyear, Dunlop and Kelly.
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