Posted on Apr 30, 2021 at 7:30 AMUpdated Apr 30, 2021, 7:35 AM
Inflation wins the tires. “Two waves of price increases have already been announced, in the United States and in Europe,” notes, at Kepler Cheuvreux, analyst Thomas Besson. According to a recent study carried out by the specialist magazine “Tire Business”, these increases have reached between 5% and 8% in recent weeks in the United States, and have affected almost all brands.
For several months now, manufacturers have been confronted with a significant increase in the prices of raw materials, as well as that of logistics costs. Natural rubber, in particular, rebounded strongly, after reaching abnormally low levels. The Covid-19 pandemic, in particular, has put pressure on the market, with sharply increasing demand for the manufacture of gloves, for example, combined with climatic conditions that have hit the plantations. The price of the raw material reached 2 euros per kilo at the end of February, its highest level for four years.