International Rubber Study Group has predicted strong global demand for tyres with a sustained growth and strong demand for new vehicles. The demand will originate from China and to a lesser extend India. The years through to 2020 will be a period of opportunity for tyre makers and the replacement market. With around 70% of natural rubber and 50% of synthetic rubber going into tyre production, global rubber consumption is set to follow increased tyre manufacturing activity.
According to Association of Natural Rubber Producing Countries, global natural rubber production is forecast to reach 10.06 million tonnes in 2011, up from a previous estimate of 9.7 million tonnes. The supply growth this year comes from expansion in yielding area by an expected 203,000 hectares and improvement in yield. About 114,500 hectares of trees planted in 2004 and a portion of 173,000 hectares planted in 2005 are expected to have opened for tapping.
According to Association of Natural Rubber Producing Countries, natural rubber inventories will remain tight around the world. Prices of rubber have dropped more than 12% since striking a record above $6 per kg in February, as economic concerns triggered by the unrest in the Middle East and worries about the impact of earthquake and tsunami in Japan. However, the momentum of recovery has eased towards the end of March caused by a bearish demand outlook.
Read lot more in Rubber4U – 1st April 2011 issue
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