Coronavirus crisis hits retreading industry hard
The coronavirus crisis is global in its spread, but as generally known its affect so far has varied from country to country as well as from industry to industry. This is certainly the case within the retreading sector. While it’s been business as usual in Scandinavia and, to some extent, markets in the Baltic region, firms in Mediterranean countries, particularly Italy, were plunged into turmoil. Although the unanimous view amongst material suppliers in Europe – a lot can be read about the state of the market and its development from observing these companies’ business – is that Europe’s retreading market has slumped by around ten to 15 per cent up to and including May, forecasts for the remainder of the year vary. In doing so, they depend significantly upon the answer to one particular question: Are we experiencing a shortage of new tyres, as during Europe’s boom retreading years of 2010 and especially 2011? We asked how things look at two of Europe’s leading material suppliers – Kraiburg and Marangoni.