Orders delivered before that date will be at pre-increase prices, thereafter there will be a 7% increase across the complete range of mining, construction, port and industrial tires.
A company spokesperson commented.
We regret to bring news of additional increases to our customers, so soon after the 6% increases in we made in September 2010, but we need to make sure that we are keeping pace with the very dynamic developments in the market and ensuring we get supplies for our future needs.
A combination of a number of key factors is driving this recent surge in material costs, and will, we believe, ensure that it continues for some time to come.
As a natural commodity with few if any viable replacements, we have to recognize that natural rubber production has been under pressure from increased demand, principally from the domestic Chinese market and their booming car industry. In addition, adverse weather conditions reduced planting of new trees in the past years and aged trees that needing replacing in the main producing countries has severely depleted production for demand now and in the future. This is likely to continue for some time, so consumers and industrial users need to factor in the higher cost of rubber to maintain their mobility.
With a continued and growing demand for mining tires as metal prices reach new highs, at Duratread we are focusing on new initiatives to extend tire life so as to compensate rising tire prices and maintain or even improve upon the overall asset costs associated with tires. Tests are now running with new GPS and GSM enabled TPMS systems that ensure optimal inflation pressures, monitored speeds and braking, so that users will get more out of their existing rubber. We see it as the way to go to minimize the impact of rising tire costs, which are here to stay.
Natural rubber prices reached an all time high this week at 5.30 US $ per kilo on the spot market, up over 60% since September 2010.
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Duratread is a specialist manufacturer of OTR Tires for the Mining Industry, Port and Logistics enterprises, Earthmoving and Construction machines. Duratread also provides added value products to enhance tire life and reduce vehicle downtime.