Automobile Parts & Accessories: Falling Rubber Prices +ve for Tyre Manufacturers - By Sherman Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">International rubber prices tumbled by 22% from their recent peak level of US$2.21/kg in September 2024 to average of US$1.66/kg in July 2025. With raw material cost corrections and volumetric growth supported by higher auto sales&mdash; driven by low car financing rates&mdash;we believe the PSX auto parts sector, particularly the tyre segment, is well-positioned to outperform in the near term.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The price of rubber went up in 2024 primarily due to heavy monsoon rain followed by extreme heat wave in Thailand and typhon in China. Another reason for the increase was the anticipation of the EU Deforestation Regulation (EUDR) at the end of 2024. The law wo...