Market Background

Rubber Auto Parts: Effects From Slowdowns in China and Asia (Part 1)

There is growing cause for concern over the outlook for Japanese manufacturers of rubber auto parts. The Chinese economy is now in a clear slowdown, while uncertainty lingers over developing economies in Southeast Asia and South America. Manufacturers have increased overseas sales over the past few years. This growth has primarily been in China and elsewhere in Asia, as well...

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Rubber Production Strong Despite Sluggish Output in Customer Industries

Production volume for synthetic rubber in Japan from January to September 2015 was 1.24 million tons, a more than 2 percent year-on-year increase, according to the Synthetic Rubber Industry Association of Japan. This was despite output by manufacturers in synthetic rubber customer industries such as automotive and tires was sluggish. Performance at synthetic rubber companies for the first half of...

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How Long Will Global EPDM Rubber Oversupply Last?

by Yasuhiko Shimizu, Chief Editor E-media   Ethylene propylene diene monomer (EPDM), a synthetic rubber used in products including automobile parts and electrical cables, is currently in global oversupply. EPDM is a synthetic rubber with superior electrical properties and outstanding resistance to weather, ozone, heat, cold and chemicals. A large share of overall production is used in the manufacture of...

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Cheaper Raw Materials Help Tire Manufacturers Increase Profit (Part 2)

The price of Japanese-made naphtha, an indicator of synthetic rubber prices, was 47,200 yen ($380) per kiloliter for the third quarter (July–September), down by more than 3 percent, or 1,600 yen ($13), over the second quarter (April–June). Naphtha prices are expected to drop further in the October–December period. Falling raw material prices look to continue as a factor in tire...

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Cheaper Raw Materials Help Tire Manufacturers Increase Profit (Part 1)

In the first three quarters of 2015 (January–September), consolidated financial results for four Japanese tire manufacturers—Bridgestone Corp., Sumitomo Rubber Industries Ltd., Yokohama Rubber Co. Ltd., and Toyo Tire & Rubber Co. Ltd.—showed large gains in operating income thanks to low prices for crude oil, natural rubber and synthetic rubber. The lower raw material prices translated into gains for Bridgestone of...

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Retread Tires Expected to Reach 30% of Market

The logistics industry, the main source of demand for truck and bus radial tires (TBRs), now faces a range of challenges to reduce costs and environmental impact. Among others these include rising fuel prices and the need to procure new vehicles to comply with emissions restrictions. One solution recently promoted by tire manufacturers is to offer tire sets that include both new and...

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