Cooper Expecting Continued RM Rise in 2011
Having raised the prices of its US passenger and light truck tyres by 6.5 per cent, Cooper Tire has told analysts in a conference call that the manufacturer expects raw materials costs to rise into 2011, as suggested by reports in the Financial Times and on tyrepress.com yesterday. Increased demand from automotive suppliers, especially in China and India, alongside unhelpful weather conditions in the rubber tapping season in south-east Asia have driven natural rubber prices continually upward in 2010.
Reuters reports that Cooper said it expects raw material costs to rise 2 to 4 per cent in the remainder of 2010. Fellow tyre-maker Goodyear said that its latest report of a third quarter operating loss of $20 million was related to the sharp increases in natural rubber prices and raw materials.
Reuters cites a report by the International Rubber Study Group, which suggests that global natural rubber demand could rise to 10.3 million tons in 2010 from 9.4 million tons in 2009.
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