ME OTR Shortage Leads to 300% Price Hike in Two Years
Those buying OTR tyres in the Middle East are likely to encounter further price hikes of 20 to 30 per cent. According to an Emirates Business report, a tyre that cost £15,000 in 2005 cost as much as £45,000 2007. Now this is expected to increase by a further 20 to 30 per cent by the end of the first half of 2008.
As a result major tyre manufacturers including Michelin, Bridgestone, Goodyear and Pirelli have all increased product prices three times a year since 2005, the report continued. Bridgestone is likely to increase prices in the region by 10 per cent in January followed by another 10 per cent in June. Goodyear is also expected to increase prices between five and 15 per cent.
Bridgestone the biggest supplier of these “super giant” OTR tyres, has already warned world demand will not be fully met until 2012, a view echoed by Michelin, the second largest supplier. The acute shortage has meant that tyres two years ago cost $30,000 (Dh110,100) or £15,000 have increased by as much as three times.