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Tire Prices To Increase in 2017
Truckers and drivers of all types of vehicles can expect to pay more for tires this year. Michelin and Yokohama were the latest tire companies to announce price increases as much as 8 percent, following other big names such as Bridgestone, Cooper and Goodyear.
Prices will increase for nearly all vehicle types across all brands in North America, including recreational and two wheeled vehicles.
The increase in prices is because of an expected rise in natural rubber prices. The Association of Natural Rubber Trends and Statistics reports a rebound in natural rubber prices as a result of increasing oil prices, supply concerns after flooding in South Thailand, renewed expectation of a US-led faster global economic recovery, and the resultant improved demand outlook.
Twelve provinces in South Thailand, the "latex bowl of the world", according to ANRPC, have experienced some of the worst flooding in the past thirty years. OPEC's deal to cut production, beginning January 1, 2017, is expected to prevent oil prices from dropping to record lows seen last year. ANPRC's analysis expects "a substantial rise in rubber prices during 2017.
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