Tyre makers burdened by Rs 4,000 cr additional costs

Added burden
(Rs crore)

Sept 07June 08 Natural rubber95,0001,43,0002380.6 Butyl rubber1,45,0003,15,000603.5 Polybutadene rubber55,0001,38,000398.8 Styrene butadene rubber83,0001,09,000180 Nylon tyre cord fabric1,04,0001,73,000717.6 Carbon black42,00052,000273  The sharp upswing in the crude oil price was the main reason for appreciation in prices of various raw materials while this, in turn, caused the price increase in natural rubber in the last 9-10 months. Increase in the price of steel reflected in the price of bead wire.  Though tyre makers have tried to contain the costs, they have been forced to pass on the cost increase to the consumers. In May and June, various manufacturers had increased the price tags by 5 per cent on an average basis. However, the situation is worsening as prices are again rising.