Raw material costs drive surge in automotive tire prices

Rising costs for key raw materials are driving a significant increase in automotive tire prices. Since the beginning of the year, natural rubber prices have climbed by more than 28 percent, reaching a nine-year high. On the Shanghai Futures Exchange, the price for natural rubber was recorded at approximately 2,670 euros per ton on October 8.

In addition to natural rubber, other essential components are seeing sharp price hikes. Carbon black, used to improve tire strength and wear resistance, has increased by more than 75 percent. Synthetic rubber and various chemical additives, which are influenced by international oil market fluctuations, have risen by between 15 and 20 percent.

These rising input costs, which account for over 70 percent of total production expenses, are being passed on to consumers. Since September, more than 60 manufacturers have issued over 70 notices regarding price increases, typically ranging from 2 to 5 percent across various tire categories, including passenger, truck, and construction vehicle tires.