Hankook to raise tire prices in China in February

Shanghai, December 26, Gasgoo.com--The Korea-based Hankook Tire Co. announced a price hike last week. The price hike, which is a direct result of rising raw material costs, will become effective on February 2008, Xinhua News Agency reported yesterday.  

 

An official from Hankook Tire China said that it would raise 5% to 8% on all passenger and commercial vehicle tires, effective February next year. However, the official indicated that the price increase will only affect the retail market, and OEMs will not be affected by the price increase.

 

Market data shows that soaring oil prices have brought up synthetic rubber prices to a record high while the prices of some natural rubber (NR) even rose by 70 to 80 dollars a ton this year. Market observers predict that NR prices could continue to rise by 10% next year as the commodity still faces a tight supply situation.

 

Another Korean tire supplier in the Chinese market, Kumho Tire confirmed that the company is also expecting a similar price hike next year. Good year and Michelin said they have no plan to raise tire prices for the time being. However, Bridgestone, Goodyear and Michelin had raised tire prices by 3% to 5% at the beginning of this year.

 

Currently, Hankook Tire is the largest passenger vehicle tire supplier in China.