From the last few weeks of browsing at various tire industry websites it is clear that tire prices will be going up by 5-8% this year in North America. Michelin, Bridgestone, Yokohama, etc have announced price increases. Presumably due to increased raw materials costs.
Tire Prices Going Up in 2017
- Thread starter SubLGT
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Hopefully DTD rebates go up too!
Got my notice from Bridgestone this morning.
Kind of curious which raw materials went up to justify 5-8% at one time. Another reason given is higher freight rates. I remain suspicious, especially since all the tire companies announced at the same time.
Kind of curious which raw materials went up to justify 5-8% at one time. Another reason given is higher freight rates. I remain suspicious, especially since all the tire companies announced at the same time.
Kestas
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I remember the price of tires went up around four or five years ago, citing shortages of rubber plants in Indo-China. They also mentioned that they were were planting more rubber plants around that time, which would help lower the price of rubber. That time has come and gone and the price of tires has not let up.
I also heard something of a cartel among the rubber producing nations.
I also heard something of a cartel among the rubber producing nations.
Originally Posted By: SubLGT
From the last few weeks of browsing at various tire industry websites it is clear that tire prices will be going up by 5-8% this year in North America. Michelin, Bridgestone, Yokohama, etc have announced price increases. Presumably due to increased raw materials costs.
Raw materials from resin to petroleum-based fluids are expected to increase in price this year. Some already have. I am curious if the fall in RM prices a couple years ago translated to the fall in retail prices of products such as tires. Probably not. Well, probably not to nearly same extent. It seems like motor oil deals were plenty last year but I don't think those prices fell even close to the same extent as prices of raw material components.
From the last few weeks of browsing at various tire industry websites it is clear that tire prices will be going up by 5-8% this year in North America. Michelin, Bridgestone, Yokohama, etc have announced price increases. Presumably due to increased raw materials costs.
Raw materials from resin to petroleum-based fluids are expected to increase in price this year. Some already have. I am curious if the fall in RM prices a couple years ago translated to the fall in retail prices of products such as tires. Probably not. Well, probably not to nearly same extent. It seems like motor oil deals were plenty last year but I don't think those prices fell even close to the same extent as prices of raw material components.
Yup, doesn't add up. Just like OMG the coffee crop has been hit by a frost story that hits about every 10 months.
http://www.zerohedge.com/news/2017-02-06/gasoline-glut-could-ruin-oil-price-party
http://www.zerohedge.com/news/2017-02-06/gasoline-glut-could-ruin-oil-price-party
It's the pay raises for the people that work there, along with any material costs. In reality, tire material cost should be going down since oil prices are declining or stable now.
Most places have pay raises defined in their budgets (where I worked it was 6% yearly). Budgets always increased by the labor budget amount and prices charged were inflated to cover the increased cost......
The press releases always said "increased material costs" but it wasn't true. It was Public Relations and most people believed it. It is pretty apparent in the electrical products industry. Copper prices have declined over the last several years but the prices keep going up due to "material costs".......
Most places have pay raises defined in their budgets (where I worked it was 6% yearly). Budgets always increased by the labor budget amount and prices charged were inflated to cover the increased cost......
The press releases always said "increased material costs" but it wasn't true. It was Public Relations and most people believed it. It is pretty apparent in the electrical products industry. Copper prices have declined over the last several years but the prices keep going up due to "material costs".......
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Originally Posted By: 2010Civic
Just checked the Michelin defenders I bought for my Civic ~2 years ago and they are $2 cheaper then when I bought them at discount tire.
You would pay more after the pending price increase. Presumably.
Just checked the Michelin defenders I bought for my Civic ~2 years ago and they are $2 cheaper then when I bought them at discount tire.
You would pay more after the pending price increase. Presumably.
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Quote:
Tire makers worldwide are citing rising raw material costs as the driver of their price increases. Goodyear Tire & Rubber Co. painted a picture of just how extreme the increases have been so far — using words like “volatile” and “unpredictable."
Richard Kramer, chairman and CEO, pointed to “significant volatility in our key commodity costs, including natural rubber prices” during a call with investors Feb. 8.
“Since our last earnings call there’s been a swing of a low of 67 cents-per-pound to a peak of $1.04 per pound as recently as last week, an increase of an astounding 55%,” said Kramer.
“The raw material cost story is about more than just natural rubber, with challenges coming in a broad cross section of commodities. Prices of key commodities such as butadiene and carbon black have risen to 52-week highs in recent weeks.
http://www.moderntiredealer.com/news/719...lion-in-3-weeks
Tire makers worldwide are citing rising raw material costs as the driver of their price increases. Goodyear Tire & Rubber Co. painted a picture of just how extreme the increases have been so far — using words like “volatile” and “unpredictable."
Richard Kramer, chairman and CEO, pointed to “significant volatility in our key commodity costs, including natural rubber prices” during a call with investors Feb. 8.
“Since our last earnings call there’s been a swing of a low of 67 cents-per-pound to a peak of $1.04 per pound as recently as last week, an increase of an astounding 55%,” said Kramer.
“The raw material cost story is about more than just natural rubber, with challenges coming in a broad cross section of commodities. Prices of key commodities such as butadiene and carbon black have risen to 52-week highs in recent weeks.
http://www.moderntiredealer.com/news/719...lion-in-3-weeks
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