SYNTHETIC rubber and polypropylene (PP) are expected to suffer from short supply as major Japanese automotive makers are set to increase their production between October 2011 and March 2012, according to research firm Platts.
Already, Japanese tyre maker Bridgestone has notified automotive makers that orders for passenger car tyres will likely exceed its domestic output capacity. The company is expected to face a shortage of an estimated 500,000 tyres, or roughly 5% of orders received, this year. Bridgestone’s seven domestic plants that are making passenger car tyres are operating around the clock and have no room to raise output. Procuring tyres from plants overseas appears to be difficult due to strong demand there too.
Platts also reports that Japan Polypropylene is having trouble keeping up with demand for PP. Inventories are running low at its 640,000 onnes/year PP plant in Kashima, which shut down for about two months following the earthquake in March. (PRA)
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