Bekaert rubber reinforcement unit reports China recovery

Brussels – Bekaert SA’s rubber reinforcement business has reported a strong recovery in volumes in China in the first quarter of 2023, driven by “customer restocking”.

The segment reported a 1% year-on-year decline in consolidated sales to €593 million, due mainly to a 10% decrease in revenues within its Brazilian joint venture.

Excluding Brazil, first-quarter sales at the business unit remained flat, as positive volume and price-mix trends, offset the impact of falling raw material prices.

While China drove rubber reinforcement volumes “as anticipated,” Bekaert said it would continue to monitor the market there closely amid “high competitive pressure”.

Bekaert went on to report continuing strong volume and sales in India, while in EMEA and North America the segment “experienced lower volumes, but maintained pricing discipline.”

According to the Belgian-based supplier, the outlook in the two Western regions remains “somewhat uncertain given weak economic consumer backdrop.”

Group-wide, Bekaert anticipated “the challenging and competitive trading environment” to persist across most business areas in 2023.

In particular, the group expects market demand and pricing levels in China to remain “uncertain”.

In terms of its end-products, Bekaert noted “growing customer interest” in tire cords containing more recycled steel.