US Replacement Shipments up 1 per cent
US replacement tyre shipments rose one per cent in March, Deutsche Bank analysts have reported. According to the report, this number is seen as relatively strong in the context of the seven per cent year on year increase experienced in February. The analysts predict a 2 – 3 per cent increase for the quarter.
Deutsche Bank also reports that tyre industry executives have been sounding relatively upbeat on the subject of pricing. Bridgestone’s announced intention to raise prices by up to 8 per cent in June (on the heels of 3 – 4 per cent increases in March) is said to send “a clear signal that industry participants will continue to pass along raw material costs.” One concern observed was that increases in gasoline prices have lead to declines in the numbers of miles driven, leading to temporary declines in tyres demand. “There is no evidence that this is occurring now,” the analysts added.