China Provides Optimistic Rubber Counterpoint
China has increased its rubber imports from 180,000 tonnes in the first two months of 2009 to 190,000 in March, Bloomberg has today reported. A rise of 10 per cent in automobile sales year-on-year (according to figures from the China Association of Automobile Manufacturers) has led to the rise following government subsidies. Incentives to the industry Japan, Germany and France are also offering incentives.
Bloomberg suggests that any revival in rubber demand from recovering car sales may be mitigated as tyre-makers switch to cheaper oil-based alternatives. The mix of synthetic to natural rubber in tyres is roughly 60 to 40 per cent, said Lawrence Orlowski, an analyst at S&P Equity Services in New York. Usually about 5 to 10 per cent of a tyre’s material can be switched, he said. (Tire Review/Akron)