Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • HUMANITARIAN
  • News
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • BEST PLACES TO WORK
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
April 13, 2015 02:00 AM

IRSG warns about global rubber oversupply

Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    (Crain News Service photo)
    Stephen Evans, secretary general of the International Rubber Study Group

    By Jane Ho, Crain News Service

    GUANGDONG, China (April 13, 2015) — The global rubber industry is facing a troubling rubber oversupply situation, for both natural (NR) and synthetic rubber (SR), according to Stephen Evans, secretary general of the International Rubber Study Group (IRSG).

    Speaking at the 2015 China Rubber Conference in Guangzhou, Mr. Evans said the natural and synethetic rubber surpluses could reach 1 million and 3 million metric tons, respectively, by 2020.

    Lack of economic growth is one reason for the underconsumption,” Mr. Evans said. “Recovery from the financial crisis has not fully happened.”

    Global consumption of NR and SR, pegged at 12.3 million and 16.8 million tons respectively in 2015 — up 3.1 percent and 0.9 percent from 2014 — is projected to reach 15 million and 19.4 million tons in 2020, or 4.4- and 3.1-percent annual growth.

    “If crude oil prices stayed down, it would add some stimulus,” he added, “increasing global rubber consumption by 500,000 tons in 2020.”

    Mr. Evans also raised concerns about upstream and downstream challenges. For producers, those challenges include adequate financial reward for farmers and a lack of inward investment for NR, as well as inadequate competitive chemical feedstock supply and bio-sourcing for synthetic rubber.

    Problems facing consumers include stable prices, raw material recovery from end-of-life rubber products, and legislation to encourage innovation ability down the value chain.

    Besides capacity and planted area expansion, Mr. Evans said he believes excess NR inventory in both producing and consuming countries has an impact on the industry in the shorter term, while longer-term factors include recycling, shale gas access in China, climate change and competition for labor and land in Southeast Asia poses.

    Mr. Evans also said he believes that with limited local NR supply in major consumer countries — China and India — and new SR capacity expansions in both countries, synthetic rubber may become the strategic product of choice.

    _________________________________________________

    Jane Ho is a correspondent for European Rubber Journal, a U.K.-based sister publication of Tire Business.

    Related Articles
    Michelin to fund 'eco' NR JV
    OTHER VOICES: Tire execs urge action on climate change
    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].

    Most Popular
    1
    Investment firm buys stake in Mavis Tire Express
    2
    Bridgestone 'making progress' on Russian withdrawal
    3
    Pirelli defers new board nominations
    4
    Bridgestone retail stores create customer rewards program
    5
    Turbo Wholesale acquires Tire Wholesalers Inc.
    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
    • Instagram
    • 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.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HUMANITARIAN
    • News
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • BEST PLACES TO WORK
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION