Due to the increase in natural rubber (NR) rates in recent weeks, tire companies may raise prices again next month. Industry sources said the increase could be 5% on average. This will be the third price increase by companies after the lockdown. Companies have already increased prices by 2-4% and this has happened due to increase in prices of crude derivatives. Oil and its associated derivatives such as carbon black is an integral part of the raw material basket of a tire company.
The price of natural rubber has increased from Rs 100 per kg to Rs 180 per kg. This surge in prices will affect the price of vehicles as it is going to be costlier than before. Manufacturers have attributed the latest price increase to the rising cost of the commodity.
Tires manufactured in India have a ratio of 40% natural rubber and 50% synthetics (petrol derivatives). The remaining 10% contain miscellaneous inputs such as steel. Explain that in June 2020, the government imposed a ban on tire imports from China to boost domestic production.
Please tell that, due to the rising price of crude oil in the world, the price of rubber has also increased in two to three months. If the rise in the prices of raw materials continues in this way, then it will become a compulsion to increase the price of finished products from April. Natural rubber is produced in India, while other types of rubber, including synthetic rubber, carbon black are imported from abroad. Products other than natural rubber are petroleum products.
Carbon black is imported from China, synthetic and EPDM rubber is imported from Japan, Germany, Korea.
Earlier, on the increase in prices, former National President of All India Rubber Industries Association, Mohindra Gupta said that the cost of production has increased by about 25 to 30 percent due to the rise in the price of raw materials.
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