Tyre prices to rise in wake of NR surge

ERJ staff report (DS)

Shanghai, China -- A brief report from China Research and Intelligence says the price of Chinese tyres is set to rise in the wake of record prices of natural rubber.

The report says, "Natural rubber is the main raw material of tyre production, accounting for 50 percent of the production cost. " While this may be significantly exaggerated, NR does contribute to the cost of a tyre. data from the US RMA suggests NR makes up 14 percent by weight of a car tyre and 27 percent by weight of a truck tyre

The report says, "In the first three quarters of 2010, the production of tyres amounted to 582.55 million, with a 24 percent increase YOY. According to the statistics, the price of the natural rubber in recent two years has trebled. After a 65 percent price increase of the natural rubber in 2010, it is predicted that the cost of rubber products such as tyres, gloves and condoms will increase further in the same year. The price of the synthetic rubber rises following the price increase of the natural rubber. As a result, the production cost of the rubber products increases drastically."

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Press release from China Research and Intelligence