The region's large number of impending and under-construction projects and mining operations means there is a 20 to 25 per cent deficit between demand and supply, according to industry estimates.
Prices of OTR tyres increased by 15 to 20 per cent in 2007 in the UAE alone, a Bridgestone executive said.
Bridgestone the biggest supplier of these "super giant" OTR tyres, has already warned world demand will not be fully met until 2012, a view echoed by Michelin, the second largest supplier.
The huge shortage has meant that tyres two years ago cost $30,000 or £15,000 have increased three times.
Japan's Bridgestone Corporation supplies between 35 per cent and 40 per cent of global demand for mining equipment tyres and says its entire production of tyres for large and giant earthmover tyres is committed to existing customers for 2006.
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Tyre shortage tires out ME projects
- Middle East: Thursday, December 27 - 2007 at 10:34
The supply shortage in the off-the-road (OTR) tyre segment, which has already seen the price of a tyre that cost £15,000 (100,500) in 2005 increase by up to 300 per cent in 2007, is set to increase by a further 20 to 30 per cent by the end of H1 2008, reported Emirates Business 24/7.The cost and availability of Truck Bus Radial (TBR) and OTR tyres is the cause of much worry at mines and huge construction projects around the world, as there isn't enough collective rubber to keep the wheels moving.
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Amena Bakr, Senior ReporterThursday, December 27 - 2007 at 10:34 UAE local time (GMT+4)
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