Report says rubber consumption to rise 4.1% annually to 2013

ERJ staff report (RD)

Cleveland, Ohio -- World rubber consumption will rise 4.1 percent annually to 26.9 million tonnes, a report from market research company the Freedonia Group has said.

According to the Freedonia report: World Rubber & Tire to 2013, China will consume over one-third of all new rubber demand in the world through to 2013, accounting for 30 percent of the global rubber market in 2013.

In terms of region, Asia-Pacific is currently the largest rubber consumer, accounting for 56 percent of global rubber demand in 2008, the statement said, adding that Asia-Pacific will also post the strongest growth in rubber demand through 2013. This, Freedonia said, is despite an expected decline in the Japanese rubber market due to lower motor vehicle production levels.

The majority of rubber demand, a recent statement from Freedonia said, is accounted for by the automotive market -- particularly from tyre usage. “Gains will be exaggerated to some extent by the fact growth will be rising off a weak recession-plagued 2008 base,” the statement said.

China will see the highest growth with an increase of 7.2 percent in annual growth through 2013. Canada and Mexico will see an annual growth of 3.3 percent, meanwhile Western Europe and US production will increase 1.8 percent and 1.6 percent respectively. Japan is expected to post a 0.7 percent decline in growth through 2013.

In terms of rubber type, non-tyre rubber demand is expected to outpace tyre rubber demand through 2013, largely due to demand for non-tyre rubber products benefiting from “rising industrialisation levels in developing countries,” Freedonia said. Strong growth in Asia will continue to boost tyre rubber demand, however environmental concerns driving the sales of small fuel-efficient cars will result in a decline in rubber usage per tyre through 2013.

Synthetic rubber is expected to post slightly slower growth than demand for natural rubber but will remain “more important.” Global SR production capacity totaled over 12 million tonnes in 2008, whilst NR production is concentrated in Asia with Thailand, Indonesia, Malaysia, India, Vietnam and China producing 90 percent of total NR in the world.

World Rubber Consumption (thousand tonnes)

World 18870 (2003) 21970 (2008) 26900 (2013)

US 3005 (2003) 2775 (2008) 3010 (2013)

Can/Mex 593 (2003) 527(2008) 620 (2013)

WE 3364 (2003) 2863 (2008) 3135 (2013)

China 3358 (2003) 5750 (2008) 8130 (2013)

Japan 1895 (2003) 2016 (2008) 1950 (2013)

Other 6655 (2003) 8039 (2008) 10055 (2013)

The 571-page report is available for $5900 from the Freedonia Group. For more information e-mail pr@freedoniagroup.com or visit www.freedoniagroup.com

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World Rubber & Tire to 2013 report details from Freedonia Group