THE All India Rubber Industries Association (AIRIA) has noted that synthetic rubber (SR) consumption is reaching a compounded annual growth rate (CAGR) of 15-20%, more than twice as much as the achieved 5-7% consumption growth of natural rubber.
Niraj Thakker, President of AIRIA said, “The demand-supply gap in production and consumption of natural rubber is there for the last few years, and is expected to continue in the coming years as well. In 2011-12 the production was around 900,000 tonnes whilst the consumption was around 970,000 tonnes. The production is expected to remain at a 900,000 tonne per annum level only, and demand-supply gap of around 100,000 tonnes would remain, “.
He also said that while consumption of NR has increased since 2007 through 2012, up by around 12.65%, consumption for SR has been higher during the same period, up by over 42%.
Consumption growth in the automotive sector accounts for the increase in SR consumption as it is used in the manufacture of tyres; Other industries also depend on SR for making tubes, footwear, belts and hoses, among other items.
.”Demand from the automotive sector is rising, and synthetic rubber finds usage in various automotive applications,” said Thakker.