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Top Tire Makers Announce Further Price Increases

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TOKYO, Japan/PARIS, France – In February the worlds two biggest tire makers Michelin and Bridgestone pointed to further raw material prices increases hitting the market. French tire giant Michelin kicked off a fresh round of price

Top Tire Makers Announce Further Price Increases

TOKYO, Japan/PARIS, France – In February the world’s two biggest tire makers Michelin and Bridgestone pointed to further raw material prices increases hitting the market. French tire giant Michelin kicked off a fresh round of price rises in Europe, passing on a spike in raw material prices including natural rubber, synthetic rubber, steel and oil.

The increases, to take effect between March 15 and July 1, will hit both consumers and businesses, likely adding to price inflation and possibly slowing economic growth.

Japan’s top tire maker Bridgestone forecast a 22 percent drop in operating profits in 2008 rooted in "rising prices for raw materials, after healthy sales and a weaker yen drove earnings above expectations in 2007“.

According to a Reuters press release "rubber prices are up due to disappointing harvests and insatiable demand from emerging economies such as China“. At the time of writing, a barrel of Brent oil was trading at just below US$100.

 

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