Due to the COVID-19 pandemic and the global shortage of semiconductor chips, the US auto industry has been plagued by factory shutdowns. The supply of rubber raw materials is now in short supply. Rubber producers are fighting climate change, pandemics, destructive fungi, container shortages and port disruptions.
The global natural rubber market is worth nearly 40 billion U.S. dollars in 2020, and the demand for rubber is expected to only increase.
The world relies heavily on Asia, and 90% of the supply of natural rubber depends on Asia. According to census data, in March 2021, the United States imported only US$140 million worth of natural rubber.
Analysts predict that the market value of natural rubber by 2026 may be close to US$68.5 billion due to increased demand for automobile tires.
Tire manufacturers are responding to the increase in raw material prices caused by increased demand and supply chain issues by increasing tire costs.
according to Kelly Blue BookPrior to the shortage, tire prices had been rising, mainly because Americans bought more trucks and SUVs than cars with larger tires. The imminent threat of rubber shortages is likely to push up these prices.
“Pirelli, like other industries, has experienced a continuous process of price increases. According to the US Bureau of Labor Statistics, tire prices in September increased by 6.2% compared with last year,” said Andrea Casaluci, general manager of operations.exist Pirelli.
Personal protective equipment such as car tires, masks and gloves, as well as 40,000 other commercial everyday items, rely on rubber.
Para rubber trees, most often called rubber trees or rubber plants, grow in humid countries such as Thailand and Indonesia. Natural rubber is a white sap that oozes from the rubber tree. It has unique characteristics that make it the key to tires and auto parts.
Last year, due to floods and leaf diseases raging supply, rubber prices rose. This problem may be a multi-year problem, because it takes seven years for a new tree to mature.
A representative from Bridgestone The world’s largest tire and rubber company Corporation told Weekly newspaper “Although this is a challenging time, we are very focused on business continuity and ensuring the integrity of our operations. We will continue to monitor the situation closely, but currently it is not expected to have any impact on our supply. Our team also maintains Open up communication channels with all our major stakeholders to ensure that there is sufficient supply as the situation continues to evolve.”
Last year, as the world’s largest consumer of natural rubber, as China’s economy opened up after the pandemic, China began to purchase in large quantities to replenish its reserves.According to a report BloombergIn April 2020, as the rest of the world entered a state of lockdown and the prices of consumer goods fell, China began to buy heavily, buying large quantities of precious commodities such as copper, oil, steel, and rubber.
Synthetic rubber has its uses in the tire industry, and tire companies have studied rubber substitutes for tires. However, natural rubber is still used in all tires due to its quite unique characteristics.
Michelin plans to reduce its dependence on new rubber production. It has established multiple facilities and is committed to creating a sustainable tire development and production model, with the goal of achieving a comprehensive tire transformation by 2050.
Today, Michelin tires have more than 200 components, composed of a variety of different material series, including natural rubber, synthetic rubber, metals, textiles, reinforcing agents and resins, and sulfur for vulcanization.
Pirelli and Bridgestone representatives told Weekly newspaper Think that the shortage of rubber is not yet a crisis. However, this does not stop the growing concerns about the automotive industry, because they have taken strategic measures to ensure adequate supply.
“Consumer demand should be better than the previous year. At that time, the impact of the blockade and purchase delays is still visible. Pirelli is fully prepared for the upcoming season, and the pre-orders from our dealers have been supplied on time,” Casaluci Say.
“Moreover, newly launched products and new sizes used for the registration of booming electric vehicles are protected to ensure quality service to our customers.”
The shortage of winter tires has been mentioned all over the country.Reporter at ABC Subsidiaries bike I interviewed a tire shop owner in Nevada. He has always advised customers to buy snow tires as soon as possible and make an appointment in advance to put the tires on hold. According to reports, stores in Montana have already felt the initial impact of reduced inventory and shortages of 50 Michelin medium-duty truck models that have been discontinued. NBC Montana.
Experts suggest that winter tire buyers should be prepared to call the person in charge and willing to take the risk out of their normal tire shop to find their seasonal tires, racing tires, agricultural tires and special tires. Buyers should also consider purchasing spare parts for emergencies, just in case, if their vehicles are not equipped with full-size spare parts.
