Prices for Tyres on the Rise

AMSTERDAM, the Netherlands – The first reports on tyre makers raising their prices are coming in. After Bike Europe’s last week’s newsletter in which the news on rubber prices going through the roof was published, it is said that tyre makers in Asia are raising their prices by 10 to 15%.

Bike Europe contacted the Kenda and CST distributors in Europe on these prices increases but received no confirmation from them yet. However, Vittoria Industries confirmed their price increases to Bike Europe. A spokesman from the Italian company that operates production facilities in Thailand through its subsidiary Lion Tyres, said that prices for OEM shipments have been raised. He declined to reveal with how much Vittoria Industries have raised its OEM prices.

At this moment other leading manufacturers of bicycle tyres and tubes refrain from announcing prices increases to Bike Europe. However, expectations are that all tyre makers will raise prices with at least 10%.

That tyre prices are on the up is caused by floods in Thailand, the world's biggest rubber producer, and in northern Malaysia, the third-biggest rubber producer. The number two producer, Indonesia, is in its dry season but that also reduces the supply of latex from trees. All in all it is leading to rubber prices which are reaching historic highs.