Category

Countries

Will Headwinds in European Replacement Tire Industry, Impact the Elastomer Pricing Trend?
Will Headwinds in European Replacement Tire Industry, Impact the Elastomer Pricing Trend?

Will Headwinds in European Replacement Tire Industry, Impact the Elastomer Pricing Trend?

  • 08-May-2023 5:00 PM
  • Journalist: Robert Hume

Germany, Europe: On the one hand, where the automotive industry has been making constant efforts to recover in the European market, the replacement tire industry is facing loss, eventually impacting the Elastomer market. As per market reports, Inflation, growing energy prices, and the Russia-Ukraine war have been taking a toll on the European tire market. The pricing trend of Elastomers, such as EPDM Rubber, Halo Butyl Rubber, Polybutadiene Rubber, etc., was optimistic primarily during the last few weeks. However, the reduced profitability of the replacement tire industry might negatively impact elastomer prices.

According to the European Tyre and Rubber Manufacturers Association (ETRMA), there is not much positive news to report from the first quarter, at least not in terms of replacement tires. The Association this week disclosed the replacement tire sales data for Q1 2023 for its members. Overall, the demand for replacement consumer tires in the first quarter decreased by 12% annually. The group reported that demand for summer tires was down 13%, while demand for winter tires was down 26%. Demand for all-season tires was essentially constant year over year, improving by 1% in 2023. Replacement truck and bus sales fell 18% in the first quarter, according to reports from ETRMA member businesses, who estimate a 3-million-unit demand.

However, the replacement tire market, where volumes fell by 39% in Q1 compared to last year's period, bore the brunt of the challenges. According to ETRMA, unit sales were around 210,000. Demand for replacement motorcycle and scooter tires slightly decreased during the quarter, falling by 4% year over year to 3.46 million. There was some positive news despite the downturns. In particular, the replacement tire market in 2019 is not too far removed from its pre-pandemic position. Sales of truck and bus tires were largely unchanged from Q1 2019. ETRMA stated that compared to last year's period, consumer replacement tire sales were down just 4%.

As per ChemAnalyst's anticipation, "Though the automotive industry has been trying to rebound in the European market, the plunge in replacement tire sales might plummet the Elastomers demand in the upcoming weeks, eventually causing the drop in elastomers market value."

Related News

Consistent Trends Characterize U.S. Halo Butyl Rubber Market Through April 2024
  • 18-Apr-2024 2:41 PM
  • Journalist: Jacob Kutchner
Stability Prevailed in German Halo Butyl Rubber Markets in March 2024
  • 02-Apr-2024 5:47 PM
  • Journalist: Peter Schmidt
German Rubber Industry Witnesses Downturn as Non-EU Competitors Emerge Victorious
  • 22-Feb-2024 3:55 PM
  • Journalist: Motoki Sasaki
Halo Butyl Rubber Markets Spiral Downward Year-End Pressures Intensify Cautious Buying
  • 20-Dec-2023 3:22 PM
  • Journalist: Jacob Kutchner