Record levels in rubber prices: tyre prices will be on the increase!
Continental and Michelin have announced a forthcoming rise in their prices. But other makers will probably follow, due to a considerable increase in the price of the raw material: rubber.
The price of rubber even reached a record level at the start of the week, selling at 3690 dollars per tonne for standard Indonesian rubber, and 4357 dollars for superior quality rubber.
The main reason is the shortage of raw material. The heavy rainfall currently falling in producing countries (Thailand, Indonesia and Malaysia) is making harvesting delicate, whereas demand is stronger and stronger especially from India and China. The exchange rate between the dollar and the yuan does not make things any easier.
This is a problem that risks getting worse due to the shortage of rubber trees (from which latex is extracted), and above all the time required for a tree to reach maturity (4 to 7 years). Synthetic rubber unfortunately is not a viable alternative as it is a by-product of oil.
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