In these days of economic gloom and despondency there are, at last, a few glimpses of light on the horizon for the embattled motorists. With oil prices starting to fall, we are beginning to see price reductions in our petrol stations. Now it appears that the recent rises in the price of rubber (up 40 percent in the last year), which have pushed up tyre prices, are beginning to level off.
Analysts at Deutsche Bank say the price should stabilise at US$2.8/kg, a reduction from an all-time high of US$3.3/kg. The bank also suggest that if the rubber price mirrors recent moves in the cost of oil we could see prices getting as low as US$2.6/kg.
This is good news for beleaguered tyre manufacturers and motorists alike.