Cost of Tyres and other rubber products will go up soon

By on Nov 1, 2010 in Automobile, Business, World Comments

According to a CNN report, rubber prices have risen to about 65% in the past year. This rising cost of rubber will translate into an increase in the cost of tyres, gloves and other rubberized products.

The increase in the cost of rubber is due to heavy rains that affected rubber production in Southeast Asia. Rubber tapping was disrupted, that cause rubber prices to triple in just two years. The cost of rubber has topped the 1952 level during the Korean War.

It is now a choice of raising prices for manufacturers or take the pain of lower profits. Top tyre manufacturers such as Bridgestone, Michelin, Goodyear and Continental have raised their prices by 5% to 15% in 2010.

Continental already announced that it will increase it price by 5% in the early part of 2011.

Image Credit: Car Tyre Reviews

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