ACCORDING to LMC International Ltd, an agribusiness consultancy group, global rubber consumption will grow at an average of 3.5% a year through 2018 as demand increases for replacement tyres, supporting prices of the commodity.
China, which consumes about a third of the world’s production, posted economic growth in the third quarter at 7.8%; and car sales in the country soared 21% in September to an eight-month high, contributing to a record global sales in 2013, says LMC.
It adds that emerging markets will be reinforcing future demand for replacement tyres, in light of light vehicle tyres production and driven by domestic and export demand. By 2020, China will account for 35% of global output of light vehicle tyres from 2% in 2010 and 52% of medium or heavy commercial vehicle tyres from 43%.
Meanwhile, global automobile sales will climb 2.9% to an all-time high of 83.5 million units this year and another 5.4% to 88 million in 2014, according to UK-based LMC automotive analyst.