Even as tiremakers pull the trigger on price hikes in an effort to not fall too far behind fast-rising raw material costs, more bad news comes from the natural rubber market.
Dec. 13-14 saw NR post record prices on the Tokyo Commodity Exchange, jumping 1.2% to 400.1 yen per kilogram for May delivery rubber.
All in all, NR prices have increased a whopping 44% this year.
Heavy rains and flooding have reduced latex product in Thailand even as demand for NR increases in China and India, where personal vehicle sales have seen 20%-plus increases this year. Analysts expect supply levels to further tighten as production slows during the winter season. NR stockpiles in Japan reportedly have fallen off nearly 8%.