Rubber scarcity creates new headache for beleaguered automakers

Automakers struggling with pandemic-induced plant shutdowns and a global chip shortage are now confronting another supply chain headache: dwindling rubber supplies. Snarled shipping lines are disrupting the movement of natural rubber, a key material used in tires as well as components under the hood. With the global supply already running short following stockpiling by China and a devastating leaf disease, rubber prices are on the rise and some U.S. auto suppliers are rushing to secure…

Goodyear to buy Cooper Tire for US$2.8 billion, nearly doubling China presence

Goodyear Tire & Rubber Co said on Monday it would acquire Cooper Tire & Rubber Company for about US$2.8 billion to double its presence in North America and China. REUTERS: Goodyear Tire & Rubber Co said it would buy Cooper Tire & Rubber Co in a US$2.8 billion deal to beef up its portfolio in the high-margin light truck and SUV segments and strengthen its presence in North America and China. Shares of Cooper, which…

Natural rubber production set for 9% drop, recovery in sight for 2021

Kuala Lumpur – Global production of natural rubber (NR) is set to fall 9% to just under 12.6 million tonnes in 2020, according to the latest figures published by the Association of Natural Rubber Producing Countries (ANRPC). The revised outlook, published 14 Dec, is 2.2% or 304,000 tonnes lower than ANRPC’s projections published in September, reflecting the impact of “climatic change, extreme weather, and leaf diseases” on output in major producing countries. In 2021, said the ANRPC update, production is anticipated to recover by…

Global rubber price to rise in H2 2021

BANGKOK, Nov 13 — The global rubber price is expected to see an upward trend in the second half (H2) of next year and may hit US$2.45 (US$1= RM4.13) per kilogram (kg) as early as 2022. ALA Advisors Pte Ltd chief Investment Officer Dar Wong said the rubber price was likely to fall again in the first half of 2021 and then make a ‘V-shaped’ recovery after mid-2021. “From now until January next year, we are…

ZC Rubber Resumes Full Tire Production in China

Zhongce Rubber Group Co. Ltd. resumed tire production at its factory in Hangzhou Qiantang New District in China, and the company says its plants in China and Thailand are both running at full capacity to meet customer needs. ZC Rubber says the first of its 9,200 workers returned to work and resumed production on Feb. 10. But before that, the company was on the front lines of the global pandemic. The company says it set…

NR growth outlook falling on coronavirus-induced demand drop

KUALA LUMPUR — The growth in demand for and production of natural rubber is slipping, prompting the Association of Natural Rubber Producing Countries (ANRPC) to revise downward its 2020 global outlook for natural rubber. The association said it expects NR production to grow by 2.7% this year to 14.2 million metric tons, down from the previous estimate of 14.3 million tons announced in its annual market report on Jan. 31, after producers reported a 5.2% drop in production in the first two months of 2020. Despite the drop,…

Rubber Bulls Look Past Virus Panic to Looming Supply Deficit

(Bloomberg) — Rubber bulls are training their sights beyond the recent slump in prices due to the rapidly spreading coronavirus and instead betting that tighter supplies will help prices rebound from a three-month low. The worst drought in four decades in Thailand, the world’s biggest rubber producer and exporter, and a leaf disease ravaging plantations in some countries including Indonesia and Malaysia could cut supply further this year, according to industry experts. Some major producers…

China Tyre Market Anticipated to Grow at over 11% CAGR through 2020

Increasing automobile sales, expanding vehicle fleet coupled with ongoing development in road infrastructure to drive tyre sales in China through 2020 According to a recently released TechSci Research report, “China Tyre Market Forecast and Opportunities, 2020’’, tyre market in China is forecast to grow at a CAGR of 11% during 2015-20. The market is expected to witness tremendous growth on account of rising automobile sales, increasing tyre production and exports, and ongoing development in road…

ANRPC reports drops in NR production in January, February

KUALA LUMPUR—World production of natural rubber totalled 2.14 million metric tons in the first two months of 2019, down 5.8 per cent from January-February 2018, according to the Association of Natural Rubber Producing Countries. The recent tropical storm in Thailand and early wintering of Hevea trees among ANRPC member countries contributed to the decline in NR production, said ANRPC Secretary General Nguyen Ngoc Bich in his preface to the association’s February 2019 edition of Natural Rubber Trends &…

Natural rubber output falls in half-year; demand up slightly

KUALA LUMPUR, Malaysia — The world supply of natural rubber (NR) fell 8.3% to 5.85 million metric tons during the first half of 2019 versus the same 2018 period, according to figures released by the Association of Natural Rubber Producing Countries (ANRPC). Global demand, on the other hand, rose 0.8% to 6.93 million tons during the same reference period, the ANRPC added. Despite the presence of “favorable market fundamental,” particularly in physical rubber market, other…