2013 seen as a ‘lost year’ for tyre makers

16 April 2013 22:52  [Source: ICIS news]

SAN FRANCISCO (ICIS)--This year is shaping up to be a “lost year” for the tyre industry, speakers and other sources said on Tuesday during the International Institute for Synthetic Rubber Producers (IISRP) Annual General Meeting.

“2013 is going to be a lost year,” said Bill Hyde, a C4 consultant for IHS. “Most of the industry is now trying to be optimistic for 2014. I don’t see any real significant change for 2013. Europe is not going to get better. The US is muddling along. China is down.”

“I agree with him,” said a European tire consultant. “I have given up on 2013. The forecasts say that Europe auto sales will be down by 10% this year. Frankly, I think it’s worse than that.”

“It’s not just auto sales,” said another European source. “It’s the European economy in general. It is worse than people think, and I don’t see it getting better.”

Most everyone at the IISRP meeting agreed that China is growing nowhere near the 7.5% rate forecast by the government.

“I have a very cautious view about China,” Hyde said. “Some people think it could get better in the second half, but I don’t see that.”

Despite the pessimistic view about the global economy, Hyde said he sees synthetic rubber prices “relative stability over the next few years”.

By: Mark Yost
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