Truckers and drivers of all types of vehicles can expect to pay more for tires this year. Michelin and Yokohama were the latest tire companies to announce price increases, following other big names such as Bridgestone, Cooper and Goodyear.
Michelin and Yokohama announced prices increases recently of 8 percent and 7 percent, respectively. Goodyear, Cooper and Bridgestone all announced price increases of up to 8 percent earlier this year, according to Modern Tire Dealer.
Prices will increase for nearly all vehicle types across all brands in North America, including recreational vehicles and two-wheel vehicles.
The increase in tire prices is because of an expected rise in natural rubber prices. On Jan. 13, the Association of Natural Rubber Producing Countries released its Natural Rubber Trends & Statistics for December 2016. In the report, ANRPC noted a rebound in natural rubber prices as a result of increasing oil prices, supply concerns after flooding in South Thailand, renewed expectation of a US-led faster global economic recovery, and the resultant improved demand outlook.
Twelve provinces in South Thailand, the “latex bowl of the world” according to ANRPC, have experienced some of the worst flooding in the past 30 years. OPEC’s deal to cut production, which began on Jan. 1, is expected to prevent oil prices from dropping to record lows seen last year. ANRPC’s analysis expects “a substantial rise in rubber prices during 2017.”
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