On July 1, 2018, the Retreading Systems Division of Marangoni SpA will upwardly adjust the sales price for rubber materials used to retread tires in all countries of the European Area. "This increase will reflect that of the raw materials used by this sector but should also be seen in the context of the current conditions of the whole TBR tire replacement market." said the company.
Marangoni explains that with the decision of the European Commission to impose anti-dumping tariffs on radial truck and bus (TBR) tires and retreads imported from China, steep price increases on Chinese imports have already been recorded, and a repositioning of all products being present in the market is taking place step by step.
"The imports of TBR tires from China had harmed the local European industry and had led to dramatic volume losses and job cuts. With the implementation of tariffs, fair competition is starting again and the whole supply-chain of tyre/retread material producers and retreaders is now asked to restore a fair and sustainable price level which might lead to the profitability needed to guarantee a viable future for these companies."
Marangoni says the increase will cover the recent raw material cost increases only, at least for now. The magnitude of the increase will be at a level of about 0.15 euros per kilogram (close to 17 cents for every 2.2 pounds) for all countries in the European region.
Following the July price increase, Marangoni Retreading Systems "will need to reposition itself, too, in the European Union member countries," says its parent company. Therefore, during the course of the third quarter, an additional price increase will value up to 6 euros (nearly $7) per tire.