Tire Production Costs Rise Due To Iran War

The Democratic Party reported that tire production plants are facing difficulties due to rising raw material prices. These price increases are linked to disruptions in crude oil supply caused by the war in Iran. Specifically, the cost of petrochemical products such as synthetic rubber used in tire manufacturing has risen significantly. This has led to concerns regarding decreased operating profits. Manufacturers are expressing concerns regarding potential decreases in operating profits. Rising costs of petrochemical-based raw materials are impacting tire manufacturing plants. Synthetic rubber and carbon black, which comprise over half of a single tire's components, have seen price increases. The import price of synthetic rubber rose by 40% over a two-month period due to disruptions in crude oil supply caused by the war in Ukraine. One facility produces 140,000 tons of tires annually. Tire manufacturer S2 faces rising production costs due to disruptions in crude oil supplies caused by the ongoing conflict in the Middle East. While existing inventory allows current operations to continue, the company expressed concerns regarding rising manufacturing costs and potential impacts on consumer pricing amid a global economic slowdown. Most raw materials for tires, including synthetic rubber and carbon black, are petrochemical-based products.