Rising raw material costs increase tire prices

Tire makers cite carbon black, rubber and other material costs in price hikes

By Tom Stundza -- Purchasing, 2/13/2008 8:10:00 AM

Fleet and MRO buyers can expect another round of tire price hikes early in 2008 as manufacturers offset “substantial price hikes” for such raw materials as carbon black, steel cord, polyester and rubber chemicals. That’s according to a forecast by analyst Saul Ludwig at KeyBanc Capital Markets in Cleveland in the latest installment of the Ludwig Report in Modern Tire Dealer magazine.

Higher oil prices were blamed for driving up the cost of making tires, Purchasing.com has reported, forcing Bridgestone Firestone North American Tire to raise tire prices as much as 8% beginning March 1. A number of other tire makers have already announced price increases this year including Goodyear Tire & Rubber, Kumho and Cooper Tire & Rubber.