The continuing increase in the price of raw materials in the past weeks is leading to the first price increase of the New Year from Duratread, effective February 1st, 2011.
Orders delivered before that date will be at pre-increase prices; thereafter there will be a 7% increase across the complete range of mining,construction, port and industrial tires.
“We regret to bring news of additional increases to our customers so soon after the 6% increases we made in September 2010, but we need to make sure that we are keeping pace with the very dynamic developments in the market and ensuring we get supplies for our future needs,” the company stated in a news release.
A combination of a number of key factors is driving this recent surge in material costs, and it will continue for some time to come, the company believes.
As a natural commodity with few if any viable replacements, Duratread recognizes that natural rubber production has been under pressure from increased demand, principally from the domestic Chinese market and their booming car industry, Duratread explained. In addition, adverse weather conditions reduced planting of new trees in the past years and aged trees that needing replacing in the main producing countries has severely depleted production for demand now and in the future. This is likely to continue for some time, so consumers and industrial users need to factor in the higher cost of rubber to maintain their mobility.
With a continued and growing demand for mining tires as metal prices reach new highs, Duratread is focusing on new initiatives to extend tire life so as to compensate rising tire prices and maintain or even improve upon the overall asset costs associated with tires. Tests are now running with new GPS and GSM enabled TPMS systems that ensure optimal inflation pressures, monitored speeds and braking, so that users will get more out of their existing rubber. Duratread sees this as the way to go to minimize the impact of rising tire costs, which are here to stay.
Natural rubber prices reached an all time high this week at 5.30 US $ per kilo on the spot market, up over 60% since September 2010.
For more information contact Duratread at www.duratread.com.