The Deutsche Bank representatives also reported that the 2005 prices increases are “likely…to be more or less fully offset by selling price increases.”
Over the last one and a half months, natural rubber increased by 10% to reach $1.75/kilogram, close to the recent high of $1.84/kilogram reached last summer. Overall in 2005, natural rubber price increased by 50%. According to Deutsche Bank, this equates to additional costs of 72 cents per passenger tyre (+2%) and $14.40 per truck tyre (+7%).