Marangoni Raises Prices in Europe
Effective February Marangoni’s Retreading Systems Division has announced a 4-8% price increase in the cost of its retreading materials throughout all countries of the European Area, with actual increases depending on the product category. The increase will be applied to markets invoiced in Euros, while the sales price percentage increase will be different in other currencies. This increase reflects the increased cost of raw materials used by the retreading sector, the rapid evolution of which has been caused by increased demand at a global level as well as a reduction in available quantities. In particular, the price of polymers, of the most direct derivatives of oil and especially of natural rubber have made this intervention necessary after several months of constant growth.
The price increase follows an extended period (2012-2015) where raw materials and tyre prices decreased in parallel and regularly. The price increase of raw materials has already forced various manufacturers of new tyres and/or materials for retreading to declare price increases or programme them for the coming weeks. Marangoni believes that these increases will not have a negative effect on the competitiveness of the retreading industry. Actually, the retreaded tyre, since it uses less raw materials compared to the new product, will benefit from this trend.
According to forecasts, this raw materials growth for the rubber sector will not stop during the next quarter and, as a result, this may lead to a further price increase, probably starting in the following month.