Demand for new tires will thus reduce the global rubber stocks to 12 percent in 2012, according to a market analysis from Citigroup. As a result, prices could rise by 18 percent by December, and should be felt by end consumers. “There are pessimistic views about economies as concerns grow over Europe’s debt crisis, but we cannot ignore the fact that auto sales in emerging markets are still expanding,” said Tetsu Emori, the Tokyo-based chief fund manager at Astmax Co.
Well, it looks like the price of tire and the world economy are going in opposite direction. This is a double whammy for consumers, who are going to pay more for their tire and most likely suffer a reduction in annual remuneration package this year. As the title of the blog suggest, head to your nearest tire shop now before the price goes up!