Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
      USW alleges COVID-19 violations at Kumho plant
    • Conti starts production of ‘HL' load index tires for select OE customers
      GM banking on 'BrightDrop' EV to build commercial van business
      Stengel promoted to president of NAPA parent Genuine Parts Co.
      Former auto exec Tyrone Jordan joins Cooper board of directors
    • NLRB certifies USW as bargaining unit for Kumho plant in Georgia
      Air France renews tire supply deal with Michelin
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
    • Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
      Evolving delivery trends good for CV tire sector — Cooper exec
      Conti adding light-duty products to General Tire OTR tire lineup
      GM banking on 'BrightDrop' EV to build commercial van business
    • Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      New stimulus package fixes PPP loan confusion
      USW opposes Taiwan tire makers' dumping counterproposal
      New round of Paycheck Protection Program funding opens
    • Air France renews tire supply deal with Michelin
      Russia's Kama Tyres expanding truck, ag tire capacities
      OK Tire adds Cooper, GT Radial passenger tires, Michelin, BFGoodrich commercial tires
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
    • New NASCAR, F1 tire designs delayed due to COVID
      U.K. race series extends contract with Goodyear through 2026
      Goodyear Racing staying on track
      General Tire Canada renews sponsorship deal with Raceline Network
    • Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
      Hankook doubles size range of Ventus V2 all-season UHP line
      Conti adding light-duty products to General Tire OTR tire lineup
      Goodyear-brand belts back on the market under licensing arrangement
    • Manley: Tire dealers look to future
      OK Tire adds Cooper, GT Radial passenger tires, Michelin, BFGoodrich commercial tires
      Wholesaler K&M Tire hosts virtual dealer conference
      Hankook doubles size range of Ventus V2 all-season UHP line
    • AMRA to host 5 educational webinars in Feb., March
      Shocks/struts maker KYB unveils video training series
      Bauer Built completes expansion at Neb. facility
      Marinucci: Basic steps to email efficiency
    • WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
      DUB, TIS Wheels founder Myles Kovacs is SEMA Person of the Year
      AAPEX: Using social media to promote your business
    • New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
      2020 Review: PPP loans give boost to small businesses
      Latest COVID relief bill includes $325B in small-business support
    • Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      New NASCAR, F1 tire designs delayed due to COVID
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
      Papadimitriou to leave position with Pirelli after six months on job
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Choosing the right balancing equipment
      Safety tips for wheel balancing
      An introduction to wheel balancing
    • Video: Demounting
      Demounting Equipment
      Making rims ready for a tight seal
      Tire changer types, tips and trends
    • Video: Safety
      Making friends with OSHA
      Ergonomics on the shop floor
      Customers
    • Video: Tire Repair
      Tire repair: Shining a light on visual inspections
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
    • Video: TMPS Service
      Decoding sensor data for TPMS diagnosis
      Replacement TPMS sensor overview
      The life-saving work of TPMS
    • Video: Training
      Advantages of apprentice program partnerships
      Options and resources for CE tech training
      Internship ideas to attract tech talent
    • Video:Vehicle Lifting
      All types of lifts for all types of work
      Tips and recommendations for lifting safety
      The gravity of proper lift points
    • Video: Wheel Torque
      Using torque sticks to speed service times
      The danger of too much, too little torque
      The importance of torque specifications
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
August 22, 2014 02:00 AM

NR surplus to shrink in 2015

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    (Blue Plover photo)

    By Supunnabul Suwannakij, Bloomberg News

    SINGAPORE (Aug. 22, 2014) — The global surplus of natural rubber will shrink 46 percent in 2015 as demand expands and farmers reduce tapping because of decreasing prices, according to the International Rubber Study Group.

    Production will outpace demand by 202,000 metric tons from 371,000 tons in 2014 and 650,000 tons last year, the Singapore-based body said in a recent email. The group said in May the glut this year would exceed the 714,000 tons in 2013 after it increased output estimates for Thailand, the biggest shipper.

    Futures plunged 28 percent this year, declining to the lowest level in almost five years in June. Supply increased after record prices three years ago spurred output, while demand slowed as the pace of economic expansion decelerated in China, the biggest buyer. The glut is now contracting as profits decrease for small farmers who represent 80 percent of world supply amid forecasts for record global car sales.

    “Small growers across producing regions have started responding to a consistent decline in prices,” said Lekshmi Nair, senior economist at the group. Farmers are showing less enthusiasm for tapping while tire demand is boosting usage, she said in the email. The inter-governmental group has members from producing and consuming nations and industry.

    Futures in Tokyo, the global benchmark, plunged to a five-year low of 190.3 yen a kilogram ($1,858 a ton) on June 5 after reaching a record 535.7 yen in February 2011. The January contract rose 0.3 percent to settle at 197.5 yen today, reversing a 1-percent decline to the lowest level since June.

    Plentiful Supply

    Global stockpiles are still expanding. Inventories will reach 3.79 million tons by the end of 2014 and 4.33 million tons by 2015, according to the Rubber Economist Ltd. Reserves will increase to the equivalent of 3.9 months of consumption at the end of 2014 from 2.5 months a year earlier, the London-based independent researcher said by email.

    “We don't expect to see an end of ample supply,” Carsten Fritsch, an analyst at Commerzbank A.G. in Frankfurt, said in an email. “Demand growth will find it hard to catch up. We do not see a major scope for prices to recover.”

    World inventories were 2.9 million tons at year-end 2013 from 2.26 million tons a year earlier, IRSG data show.

    “The continued decline in natural rubber prices and a slower-than-expected recovery in global demand as well as increased supply have led to an inventory buildup,” Nair said.

    Production from growers representing 93 percent of global output dropped 1.1 percent to 5.83 million tons in the first seven months from a year earlier, the Association of Natural Rubber Producing Countries said. The group represents the top producers including Thailand, Indonesia and Vietnam.

    Global sales of light vehicles are set to climb 4 percent to a record 90.5 million units next year, according to LMC Automotive Ltd., a research company in Oxford, England. Sales across Asia will expand 5.4 percent in 2015, it said in email.

    World production will rise 2 percent to 12.3 million tons this year and increase to 12.6 million tons in 2015, the study group said. Demand will expand by 4.5 percent to 11.9 million tons in 2014 and grow to 12.4 million tons next year.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • List Rental
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION