Raw Material Costs Continue Pressuring Tyre Industry

The global tyre industry continues facing strong cost pressure in May 2026 as raw material prices remain elevated across both OTR and TBR sectors. Rising costs of natural rubber, synthetic rubber, carbon black, steel cord, and logistics are impacting manufacturing expenses and driving continued pricing adjustments throughout the market.

Raw Material Cost Increases by Numbers

• Carbon black: Prices increased approximately 20–25% year-on-year due to higher energy and oil-related production costs.
• Synthetic rubber: Costs rose nearly 35–40%, heavily influenced by crude oil price volatility.
• Natural rubber: Prices remain elevated by approximately 10–20% due to supply constraints and weather-related disruptions.
• Steel cord materials: Manufacturing costs increased approximately 8–12% across global markets.
• Freight & logistics: Shipping and transportation costs continue rising by 15–25% in some regions.

Key Factors Driving Cost Pressure

• Oil market volatility: Higher crude oil prices increasing costs of petrochemical-based tyre materials.
• Energy expenses: Rising electricity, fuel, and gas prices impacting tyre production facilities.
• Supply chain disruption: Delays in global shipping and raw material sourcing affecting production schedules.
• Global demand: Continued demand from automotive, mining, and logistics sectors tightening supply availability.

Impact on OTR & TBR Segments

• Higher production costs: Manufacturers facing tighter operating margins across heavy-duty tyre categories.
• Price adjustments: Continued tyre price increases across OTR and TBR markets globally.
• Fleet pressure: Mining, construction, and transport operators experiencing higher operating expenses.
• Retreading growth: Increased demand for retread solutions as fleets seek cost-saving alternatives.

Industry Response

• Efficiency investments: Manufacturers increasing automation and smart production technologies.
• Durability focus: Greater emphasis on longer-lasting compounds and improved casing strength.
• Sustainable materials: Expanded use of recycled and alternative raw materials to reduce dependency on volatile commodities.
• Inventory management: Companies closely monitoring stock levels and supply chain risk.

Outlook

Industry analysts expect raw material and logistics costs to remain a major challenge throughout 2026. Manufacturers and fleet operators are likely to continue focusing on durability, retreading, operational efficiency, and lifecycle cost management to offset rising market pressure.

Reference

• Source: Global tyre industry raw material analysis and market reports – May 2026