Leading tyre companies Apollo Tyres and JK Tyres have increased prices due to the sharp rise in prices of natural rubber (NR) and scarcity of the commodity in the market. Others are expected to follow suit.
The rise, across all brands, is expected to come into effect by the end of this month.
Apollo Tyres had raised the price of non-truck tyres by 5 per cent from December 26 and extended the hike to truck tyres from January 1.
“The average price of truck tyres has gone up by 7 per cent,” said Satish Sharma, chief, marketing and manufacturing, Apollo Tyres.
He added the market was anticipating an increase because of media reports about the sharp rise in NR prices and the shortage of the commodity.
JK Tyres increased prices across segments by 2-5 per cent, except light truck tyres, in the last week of December.
Automotive Tyre Manufacturers Association (ATMA) Director General Rajiv Budhiraja said all companies were expected to increase prices by the end of this month.
He added the industry was facing tough times due to the sharp rise in NR prices and the scarcity of the commodity.
The industry consumed 356,400 tonnes NR (58 per cent of the total domestic consumption) during April-November of the current financial year.
Meanwhile, NR prices remained high today. The benchmark grade RSS-4 was quoted at Rs 138 a kg. Leading Kochi-based traders said the supply of rubber to terminal markets was limited and the market was facing a serious supply crunch.
N Radhakrishnan, former president, Cochin Rubber Merchants Association (CRMA), said the shortage was mainly due to stocking of rubber by growers in anticipation of higher future prices.
There are widespread reports that the RSS-4 price may cross Rs 150 a kg soon as it is at Rs 160 a kg in futures trading. So, there is heavy stocking by growers and small and medium stockists in major growing areas.
International prices also rose on a par with local prices with RSS-3 quoting at Rs 138.28 a kg and RSS-4 at Rs 137.20 a kg.
(Source: irco.biz)
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