Report: Rising tyre cord demand from emerging countries
A new report published by research and markets suggest that tyre demand is increasing in emerging markets. It points out that global automotive production has a direct impact on the demand for tyres and tyre cords in the OEM segment. Higher number of cars produced translates into increased use of tyre cords in tyre production and vice versa. Therefore disruptions in vehicle production tend to distort opportunities in the market.
Demand for tyre cord was affected during the 2007-2009 recession period with the automobile industry being one of the worst hit industries. Demand for cars, during the period, witnessed hurting declines as a result of higher levels of unemployment, lower purchasing power and the resulting postponement of new car purchases, decline in per capita automobile travel and volatile fuel prices.
Reductions in per capita automobile travel directly impacted demand for tyres and thereby tyre cord in the replacement market. In the United States for instance, the average number of vehicle miles travelled per year for light vehicles was an estimated 12 thousand miles for the year 2008, and 10 thousand miles for the year 2009, representing a cumulative decline of over 6.0 per cent when compared to the year 2007. In the OEM market for commercial vehicles and passenger cars, postponement of new car purchases as a result of tight liquidity and lengthening of the replacement cycle resulted in reduced demand for tyres and tyre cord. In the Off-the-Road (OTR) vehicles market, the collapse of the construction and mining industries impacted demand for off-the-road vehicle tyres and tyre cord.