News of falling rubber prices should be welcomed by China-based tiremakers as the Shanghai-based Oriental Morning Post reports that 50% of them have recorded losses for 2010 thanks to continued high natural rubber prices.
Most Chinese manufacturers have responded to recent high raw material costs with price increases. The China Rubber Industry Association notes that since the Chinese New Year holiday period a number of tiremakers, including Michelin, Bridgestone and Double Coin Holdings, have raised prices by between 5% and 8%. The association adds that those who have not yet increased prices are planning to do so either in March or April.
According to the newspaper, Double Coin vice president Zhang Wanyou states the proportion of total tire production cost accounted for by natural rubber has grown from 42%-45% to more than 50%. Zhang adds that Chinese tiremakers are still facing “tremendous pressures” despite increasing prices by some 20% to 30% in 2010. (Tyres & Accessories)
See more effects of the cost of natural rubber in related news posted today:
Japan Disaster Pushes NR Price Drop
Thailand Wants to Prop Up Rubber Prices
