Rubber demand growth is led by China

Rubber demand growth is led by China

http://www.sand-mill.com 2008-2-23 PRW [ views: ]

US research firm Freedonia Group is forecasting world rubber consumption to increase at an annual rate of 4.0% to reach 26.3m tonnes by 2011.

China's rise through the ranks in the 1990s took it to the top spot for rubber consumption in 2002, when it displaced the US. This strong growth rate is expected to continue, with Freedonia forecasting an increase of 9.5% per annum up to 2011 when the Chinese market would consumer 8.8m tonnes of rubber.

The Asia-Pacific region is by far the leading rubber consumer, using more than half of all rubber consumed globally. The region is also expected to see the strongest growth in rubber demand in the period to 2011, reflecting strength in China, India, Thailand and Vietnam.

Latin America, Eastern Europe and the Africa/Middle East regions will also see solid increases. In contrast, rubber demand in Western Europe, the US and Japan will increase less than 1% annually.

Freedonia said rubber for non-tyre applications will outpace tyre rubber demand over the next few years. Demand for rubber products will benefit from rising industrialisation levels in developing countries.

Good opportunities for rubber products will arise in sectors such as automotive (belts, hoses, gaskets, mouldings, cushioning), industrial (adhesives, padding, belting, vibration dampening, wire and cable sheathing, hoses), consumer (toys, cushions, door mouldings) and construction (wire insulation, moldings, roofing, sealants and adhesives).

Tyre demand will benefit from rising trends in vehicle production levels as well as the replacement tyre market. Consumer preferences helping the upward trend include: the popularity of performance tyres and a shift from retreads to new tyres.