The sales price increase of the Retreading Systems division throughout the entire European region is a result of a raw materials price increase.
Rovereto (IT) – During the month of February, the Retreading Systems division of Marangoni will upwardly adjust the sales price for rubber materials used to retread tyres in all countries of the European Area, with percentage increases between 4 and 8%, depending on the product category. This will be applied to markets invoiced in Euros, while the sales price percentage increase will be different in other currencies.
This increase reflects that of the raw materials used by this sector, whose rapid evolution is caused by the increasing demand at a global level as well as a reduction in available quantities. In particular, the price of polymers, of the most direct derivatives of oil and especially of natural rubber - also encumbered by the decreased supply - make this corrective intervention necessary after a few months of constant growth.
The price increase follows an extended period (2012-2015) where raw materials and tyre prices decreased in parallel and regularly. The price increase of raw materials has already forced various manufacturers of new tyres and/or materials for retreading to declare price increases or program them for the coming weeks. Marangoni believes that these increases will not have a negative effect on the competitiveness of the retreading industry. Actually, the retreaded tyre, since it uses less raw materials compared to the new product, will benefit from this trend inversion.
According to forecasts, this raw materials growth for the rubber sector will not stop during the next quarter and, as a result, this may lead to a further price increase, probably starting in the following month.