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Re: RV Tire Prices going up

Reply #1
Yahoo Message Number: 63697
According to my tire sources "it's the worst we have ever seen it ". I waited over 6 weeks for 315's...Michelins and we are still short 2.
Price has climbed even higher when received as the order was placed. I have been told by more then one tire jobber that will not be firm on the price until they are in my store.
Just had a friend trying to replace 2 steer axle Michelins and he was told 2-4 weeks to get. And again no firm price quote. Dealer told him that one thing for sure the price will not be less then I'am telling you today.
AL

00 affinity

Re: RV Tire Prices going up

Reply #2
Yahoo Message Number: 63717
Al,

And why is this happening?

Rich 2002 Magna

Re: RV Tire Prices going up

Reply #3
Yahoo Message Number: 63718
Spring Break! Called down to South Padre to check on rooms during spring break and they said they come with 400 condoms a night. I think they are causing a rubber shortage! Kevin Burns

00 Affinity 5865

Re: RV Tire Prices going up

Reply #4
Yahoo Message Number: 63719
Rich,

It's called supply and demand, demand is up but supply of rubber is down and will stay depressed for at least a couple of years thus driving up the price of raw materials for tires. Did you read the link?
http://www.businessweek.com/news/2010-09-21/bridgestone-goodyear-face-deepening- rubber-shortage.html
Ray

2000 Intrigue 11040


Re: RV Tire Prices going up

Reply #6
Yahoo Message Number: 63723
I really do like Michelin tires but there are many good alternatives if the prices go too high and the items are too hard to get. Unlike 20 years ago there are at least 6-10 reliable suppliers of quality made tires that fit on Country Coaches. Next spring I am going to replace my drive tires and will check Mich, GY, Fire, Hankook, Bridgestone, Goodrich, Toyo, Yoko, Sumi, Conti, and maybe Kumo. Mich gets the nod if prices are fairly close and made dates. Otherwise someone else.

Bob Nuttmann
2002 Affinity

Re: RV Tire Prices going up

Reply #7
Yahoo Message Number: 63730
The short answer is rubber is not going up as much as the dollar is going down. Look at the current exchange rates and compare them to a couple of years ago.

Mikee

Re: RV Tire Prices going up

Reply #8
Yahoo Message Number: 63735
The dollar is actually stronger against the Euro now then it was a couple of years ago, two years ago a US dollar would buy .68 Euros whereas yesterday the same US dollar would have bought .75 Euros. It appears that the price of tires has accelerated upward at a rapid rate in recent months, due to the coming demand squeeze.
If you are going to need tires within the next few months, it might be wise to buy them now, even at the current inflated prices due to rubber shortage. It appears the price will continue to rise due to the rubber shortage.

An updated article states the following:

The Squeeze on Global Rubber Supplies Freakish weather hurts rubber production across Asia

By Aya Takada and Supunnabul Suwannakij BW Magazine

Extreme weather across the globe this year, from drought conditions in Russia and Ukraine to flooding in Pakistan and Canada, is lighting a fire under commodity prices. Wheat prices have spiked since June, while corn rallied to a 23-month high, coffee reached a 13-year peak, and cotton advanced to its most expensive levels since 1995. Now the price of rubber, a key industrial commodity, is taking off.
Goodyear Tire & Rubber (GT) and Cooper Tire & Rubber (CTB), the two largest U.S. tiremakers, have begun notifying customers they will raise tire prices by as much as 6.5% by early November. Bridgestone, the largest tiremaker by sales, said in late August that it's increasing prices by up to 6% in Europe, the Japanese company's second price increase this year.
The industry is facing supply problems owing to bad weather that hit rubber production in Asia. "Drought earlier this year and heavy rains later on hampered tree-tapping across Asian plantations," says Pongsak Kerdvongbundit, managing director of Von Bundit, a big natural-rubber producer and exporter based in Phuket, Thailand. "Global production will lag behind soaring demand for at least another two years."
Inventory stockpiles of rubber, also used in products like gloves and condoms, will drop 12 percent and cover just 67 days of projected demand in 2011, the lowest level in at least a decade, according to Goldman Sachs (GS) analysts in a Sept. 3 report. Consumption will outpace supply by 127,000 metric tons, the most since 2007, the bank estimates. Prices of rubber futures in Singapore may jump 20 percent by March, says Makoto Sugitani, a senior director at Newedge Japan. If so, that would work out to a record $4.20 a kilogram.
The global economic recovery and white-hot growth in China are powering demand for rubber products. World auto sales, propelled by Chinese demand, will increase 8 percent this year, to 68.5 million cars, and 7.2 percent, to 73.4 million cars, next year, figures Ashvin Chotai, London-based managing director at Intelligence Automotive Asia.
Tiremakers are passing on the higher costs, and future hikes can't be ruled out. "We don't do a lot of raw-material hedging" says Keith Price, a spokesman for Akron-based Goodyear.
Top Glove, based in Selangor, Malaysia, the world's biggest rubber-glove maker, passes on "the majority" of higher costs, says Executive Director Lim Cheong Guan. Rising costs are "a headache," says Sakae Kubota, managing director of Okamoto Industries, Japan's biggest condom maker. However, competition from other brands may limit the company's ability to raise prices, Kubota added.
The bottom line: Extreme weather in Asia has hit rubber production and has prompted tiremakers and other businesses to raise prices.

Copied from Business Week
Ray

2000 Intrigue 11040

Re: RV Tire Prices going up

Reply #9
Yahoo Message Number: 63750
There's more to this story than simply exchange rates and supply. We are Australians and I can tell you that tires in the USA are far more expensive than they are in Australia. I just paid $590.00 for Toyos for our Intrigue. Back home in Australia an equivalent tyre cost me about A$390.00. (For a bus conversion). Given the then exchange rate that is about $350..00 in US dollar terms. (Current ex rate has gone from 85 to 95 cents in the dollar).
I think US customers are simply paying too much for their tires. The US is a consumer society that loves its cars and RVs. The tire manufacturers are simply taken advantage of your love of driving.

Bruce

2001 Intrigue #11278

Re: RV Tire Prices going up

Reply #10
Yahoo Message Number: 63753
you hit the nail on the head. we've been using a $.10 dollar but now it's about $.05 we just have to live with it and enjoy .happy motoring......... bob '02 magna6028