22 Apr 2024
HSBC Global Research forecasts raw materials costs to become a significant headwind for tire makers later this year
Global tire manufacturers could find it increasingly challenging to deliver the robust earnings performances seen generally over recent years.
That’s according to the latest HSBC Global Research analysis of costs, pricing and inventory levels in both OE and replacement tire markets worldwide.
One potential game-changer relates to raw materials costs, which are forecast to switch from being a tailwind to become a significant headwind for tire makers later this year.
After a record increase that began in mid-2020 and peaked two years later, raw material prices have declined since the second half of 2023, the HSBC analysts noted.
While they expect this decline to continue in first-half 2024, the equity experts see trend materials cost reversing in the second half of the year...
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