Amid rising input cost tyre makers hike prices
To counter rising raw material prices, tyre makers have opted for a price hike of their products in the range of around 2.5 to 3 per cent. The tyre makers that have taken price hike are MRF, JK Tyre & Industries and CEAT.
The higher cost of crude oil hurts the profitability of the tyre companies and thus to overcome this situation, the tyre players have decided to pass on this burden to end customers.
This price hike comes when prices of major raw material, crude oil are heading northwards. The price of Brent crude is at around US$ 75 per barrel which is the highest level since November 2014.
This northward movement in crude oil price is attributed to rising geopolitical tension in the Middle East and OPEC’s decision to lower output of crude oil. On the other hand, prices of other raw material such as natural rubber are at lower levels of around Rs. 120 per kg.
At 14.10 hours, the stock of CEAT and MRF were trading flat at Rs. 1,510 and Rs. 75,770 per share, respectively. But JK Tyre was trading at Rs. 153, up by around one per cent on Monday.
