Tire prices were repeated increased in the year 2021 and are predicted to follow the same pattern in the year 2022. As the operations all over the world are getting back on its pace the growing demand for truck and car tires is increasing day by day. The supply chain of the world is still in backlog and there are delays in the delivery of tires all over the world especially in the shipments from China, as several provinces of China are entered lockdown.
The reason for the price increase is the increase in the price of the crude oil. The synthetic rubber which is a key raw material that used to manufacture tires is composed of a combination of crude oil. Also, on the other hand, steel, carbon black and shipping costs have been increased significantly. The crude oil prices have been increased because of the conflict happening in Europe. Chinese tire manufacturers are facing high labour costs as they are short-staffed due to the current lockdown in several provinces of China. The raw material prices have increased almost 10% to 12% within last 6 months.
Famous tire manufacturers like Dunlop, Maxxis, Century, Double Coin, Kenda, Tongli, Hankook, Michelin, Advance, Yokohama, Goodyear, Hengfeng, Wanli, Cooper and Linglong have increased their tire prices. The prices are roughly to increase around 3% to 10% and are to be reflected in April. The dynamics of the tire industry are changed after the pandemic and as tire being an initial product, its demand is only going to increase as there is no alternative for tires currently.
