The price of truck and trailer tyres could rise again in 2012 after increasing up to 30% over the last two years on the back of massive hikes in oil and rubber prices.
The actual level of price rises operators have seen in the last two years vary depending on their individual purchasing strategy.
“In 2011, tyre prices rose quite dramatically because they had to follow the raw materials, probably 25% to 30%,” says John Folliss, sales and marketing director for Bridgestone Europe north region. “The larger fleets tend to be on longer term contracts and they will be hit further down the track. They know it’s coming but won’t have experienced it yet.”
Martin Covington, head of UK truck tyre marketing at Michelin, agrees that the “big issue” in the last two years has been the cost of raw materials.
“Rubber prices peaked in February 2011 and have come down a little since then,” he says. “But it is still a massive increase. Our tyre prices are up 30% in two years – but raw materials are up 300%.”
While the graphs of commodity prices did level off towards the end of 2011, Folliss predicts more price rises later this year. “I would expect more retail price increases in the future,” he says. “Not at the moment but I expect raw material prices to start rising again. We have to put through price increases which match what’s happening in the wider market.”
Nigel Sowerby, Goodyear Dunlop Tyres’ UK director for commercial vehicle tyres, is more cautious about the future but warns that if commodity prices start to rise again, tyre prices will have to follow.
“There were multiple price increases in 2011,” he says. “Who knows what will happen in future – we don’t know what is around the corner.”
For more on truck tyres see the 26 January issue of Commercial Motor and the 6 February issue of Motor Transport.
