Continental expects materials costs to rise

2018-08-20

Overall, for 2018, Conti expects a $57 million negative impact due to increases in oil and synthetic rubber prices, the group said in its 2018 half-year results published Aug 2. The company previously had forecast effects from raw material prices to be nearly balanced for the Rubber Group, which comprises the Tire and ContiTech divisions.0817.jpg

With the average price of North Sea Brent crude oil up from $54 per barrel to $71 per barrel in the first half, costs for carbon black, and other additives are expected to rise by more than 10 percent compared to the average prices in 2017.

For butadiene, the company is increasing its forecast for the average price across the year from $1.51 per kilogram to $1.60 per kilogram.

For natural rubber prices, however, the company expects the average price to be below the previous year's level, at $1.44 per kilogram, compared to $1.67 per kilogram in 2017.


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