As if increasing fuel prices haven’t troubled us enough, prices of tires too have been on a journey to the north.
However, price of natural rubber has been on a decline in recent times and this downward trend might lead to a cut in tyre prices.
Price of raw rubber was at its peak at $4.5/kg around a couple of years ago. Last year though, we saw price of raw rubber falling to as low as $3.1/kg per kg. This might lead to a ‘tyre price drop’ and the tyre dealer’s federation is demanding an 18 to 20% reduction. Original Equipment Manufacturers, however, are against the price cut as they feel that though price of natural rubber has gone down, other raw materials such as synthetic rubber, rubber chemicals and steel tyre cord have become expensive.
It remains to be seen if consumers get a relief from sky rocketing tyre prices.