NR Price Increase Drives Tire Prices   

It can hardly be accepted that drought gives tire makers a reason to raise selling prices, but it exactly happened.  
   A heavy drought that lasted for nearly six months is estimated to reduce 50% natural rubber production in Yunnan province, China's main production region. The price of natural rubber produced in Yunnan province surged from RMB15 000 per ton in October 2009 to RMB25 000 per ton in March 2010.
   Affected by this, Sinopec Corp. and PetroChina Company Ltd. announced the price rise of synthetic rubbers, including SBR and SBS.
   Pushed by cost increase, domestic tire makers raised selling price, a year to date growth between 2% and 10% was witnessed in March. Many foreign funded tire manufacturers also raised their selling prices in Chinese market.