Drop In Key Material Costs For Tyre Industry
by Richard on March 14th, 2011
After months of price rises across the board from most major tyre manufacturers a report has shown that there may be a light at the end of the tunnel for manufacturers and their customers.
A recent report by Deutsche Bank has cited a number of materials, most crucially natural rubber that have begun to decline in price. At the time of the release of the report by the German bank’s Equity Research Automotive division it was estimated that prices of natural rubber per kilo have dropped by 15% since major US manufacturers released their results for the 4th quarter of trading.
Overall it is predicted that total raw material costs could decline by around 4% when compared with the report.
Needless to say many hauliers and tyre dealers up and down the country will be looking for these latest figures to be factored into pricing levels in the near future.
Rubber Shortage Leads To Price Increases
by Richard on January 6th, 2011
Supply fears hitting the global rubber market have caused the raw material essential in the production of tyres to rocket in price to its highest ever level.
The price of raw rubber has now increased by approximately 25% in the past two months due to a number of factors and has now reached over $5 per kilo. These include:
Recent major floods in South East Asia, one of the largest rubber producing areas in the world
Increased demand from emerging economic superpowers including India and China
Increases in vehicle sales across China, Europe and South America
Lack of investment in basic rubber extraction, leading to less economically sustainable production at plantations
To heap further misery onto the industry, this shortage has come at a time when the annual onset of winter in Thailand causes a significant drop in production as the trees from which the rubber is extracted shed their leaves. Thailand accounts for around 30% of the global rubber output, and with the severe flooding causing their production to sit at around 66% capacity this bad timing will put further constraints on Thailand’s ability to export natural rubber.
With many of the leading tyre manufacturers struggling under the weight of rising costs, in spite of numerous price rises throughout last year, the price of tyres whether they be car, van or truck is set to rise once again this month with some prices in the truck sector jumping up as much as 10 – 11%.
The outlook for the future of rubber supplies also appears to be rather bleak, with forecasters predicting that it may take as long as 5 years to bring production back to its optimum level. Therefore a number of manufacturers are looking at material substitutes to replace natural rubber in their tyres and bring down costs, but for the foreseeable future we are forced to accept the rising prices, which makes an excellent argument for proactive tyre management as supplied by Tyrenet, which helps to reduce your tyre costs.
Tyrenet Adds 600th UK Tyre Dealer
by Richard on November 19th, 2010
Tyrenet is pleased to announce the addition of its 600th UK service location.
The recent additions to our commercial tyre dealer network in the UK ensure that we can provide even better coverage across the whole country, ensuring that you are mobile again as soon as possible.
Tyrenet have coverage in all parts of the UK, including all major towns and cities along with a number of more remote locations just in case you’re passing through!
Our network is continuing to grow, and not only covers the whole of the UK but also Europe through our TEN Partnership.
We are still looking for committed professional commercial tyre businesses to join our network and help improve our service. For more information just call and ask fro an application form.