From July the retreading systems division at Marangoni will upwardly adjust the sales price for rubber materials in all countries in Europe. This increase will reflect the price of raw materials in the sector but should also be seen in the context of the current conditions of the whole TBR tire replacement market.
With the decision of the European Commission to impose anti-dumping tariffs on TBR tires and retreads imported from China, steep price increases on Chinese imports have already been recorded and a repositioning of all products in the market is taking place step-by-step.
The imports of TBR tires from China had harmed the industry in Europe and led to dramatic volume losses and job cuts. With the implementation of tariffs, there is now fair competition again and the whole supply chain of tire/retread material producers and retreaders needs to restore a fair and sustainable price level to get back the profitability needed to guarantee a viable future for these companies.
For the time being, the increase will cover the recent raw material cost increases only. The magnitude of the increase will be at a level of about +0.15 €/kg (+0.17 US$/kg) for all countries in Europe.
Following July’s price increase, Marangoni Retreading Systems will need to reposition itself too within the European Union member countries. Therefore, during the course of the third quarter, an additional price increase will see each tire valued at up to €6 (US$7) per piece.