Major tire makers are planning to raise prices by between 8 and 12 percent next year on the back of soaring synthetic rubber and natural rubber prices.
Federal Corp (泰豐輪胎) said in a Taiwan Stock Exchange filing that it would increase prices by between 9 and 12 percent, days after Nankang Rubber Tire Corp (南港輪胎) said it would increase prices by the same percentage, while Hwa Fong Rubber Industry Co (華豐橡膠) said it would hike prices by 8 to 10 percent.
Global rubber prices soared 100 percent to US$2,200 per tonne this month from US$1,100 a year ago, Nankang spokeswoman Kuo Mei-hang (郭美航) said by telephone yesterday.
That also represented an increase of 47 percent from US$1,500 a month ago.
“Synthetic rubber and natural rubber account for more than 50 percent of Nankang’s raw material costs,” Kuo said.
Kenda Rubber Industrial Co (建大輪胎), the nation’s second-largest tire manufacturer, is also planning to increase prices by between 3 and 5 percent next year, a company official said.
The official, who declined to be named, said its global competitors had raised prices by nearly 3 percent this month, including Michelin Group, Goodyear Tire & Rubber Co and China’s biggest tire maker, Zhongce Rubber Group (中策橡膠).
“Kenda will not raise prices significantly in the near term, as we hope to sustain our global pricing competitiveness,” he told the Taipei Times, adding that the company has better bargaining power than its local peers.
Commenting on the global trend in rubber prices, the official said that prices might return to normal levels sooner than expected.
“The upward trend [in raw material prices] was mainly due to market manipulation, instead of real demand and supply problems in the global rubber market,” he said.
Kenda’s main rival in the domestic market — Cheng Shin Rubber Industry Co (正新橡膠) — is also mulling raising prices in the first quarter of next year.
“We will take customers’ feedback into consideration,” Cheng Shin spokesman Richard Lo (羅永勵) said, without elaborating.
