Tire Prices Continue Growing
Posted on December 2, 2009
Filed Under Goodyear Tires, Interesting, Michelin Tires, Pirelli Tires
Import duties in combination with restrained shipments and increased demand have led to the growth of tire prices in the United States, reports Associated Press.
Goodyear, the biggest American tire manufacturer, has just announced that it will raise the cost of its production, and other producers are likely to follow its example to compensate the effect of additional import duties imposed on Chinese tires as well as growing prices for raw materials such as oil and natural rubber. Saul Ludwig, the analyst of the KeyBank, is sure that in January 2010 the prices will grow by 5-10%.
According to the forecast of Rubber Manufacturers Association (RMA), at the beginning of 2010 the Americans will buy around 210 million tires on the secondary market. President Barack Obama has recently imposed additional 35% import duties on Chinese tires after the United Steelworkers had announced in its petition that the rise of import had led to the discharge of more than 5000 American workers since 2004. The Chinese tires have held 17% of the US secondary market what is more by 12% if to compare with the data of 2005.
The law will cover the tires produced in China by the major manufacturers such as Michelin and Pirelli, as well as tires produced straight by the Chinese companies and exported to the American market under such brands as Ling Long, Wanli etc.
At the same time not only the prices for the Chinese tires began to grow. Goodyear Tire & Rubber Co. announced that it would raise the cost of all consumer tires on the secondary market by 6% on December 1, 2009. The company stated that it was caused by the raw materials price rise. Around 2% of Goodyear tires are produced in China and it will help to offset the expenses caused by the rise of duties.
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