Weak tyre production drags NR consumption

tiremakerIN A REPORT, consumption for natural rubber (NR) fell 1.5% to 165,000 metric tonnes in the April-May period, compared to 167,000 metric tonnes during the same period last year, despite an increase of output to 112,000 metric tonnes or 1.2% from the previous year’s 167,440 metric tonnes, based on a provisional data of the Indian Rubber Board.

The decline in tyre production during the last financial year also caused the drop in NR consumption, according to Rajiv Budhraja, director general, Automotive Tyre Manufacturers Association (ATMA). Except for the first quarter, the succeeding quarters of the last financial year had weak sales and production slowing down. Tyre production has slowed continuously for seven months, likewise impacting the import of rubber, Budhraja said.

The cumulative import in April-May was 31,730 metric tonnes, falling short from 38,393 metric tonnes a year ago. Demand for original equipment (OE) segment tyres has been weak for nine months, with a decline in demand during April-May period estimated at nearly 10%. Budhraja also projected a continuing slow demand for rubber this year, along with the weak demand in the auto and tyre sectors.