Tyre industry sold out

ERJ staff report (DS)

Essen, Germany -- If you want to source a few thousand tyres, it's going to cost you. A series of tyre makers in Essen, Germany said that their factories are full and they could supply a large order of tyres, but only if the price was right.

Executives said the global capacity shortage is reflected in robust price increases over the last few months. They said demand was slack until the first quarter of this year, but has picked up strongly since then.

They said the market has seen strong, sustained demand in Asia combined with a sharp increase in demand in the more established markets. Manufacturers in the more established regions have taken time to respond, with some factories still using short-time working practices into the second quarter. Most executives noted that the shortage was likely to be temporary, expecting it to ease before the end of the year.