Synthetic rubber suppliers face a crude hard truth

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This observation — by Yuka Kimoto, director of marketing for Lion Elastomers — is the accepted wisdom in the synthetic rubber market, and with good reason.

Prices for a wide swath of synthetic rubbers have gone sharply up in the past few months, sparked by equally sharp increases in butadiene, methanol and other petrochemical feedstocks.

Considering oil prices alone, there is no reason to believe that feedstock prices — and, with them, SR prices — are coming down any time soon. As of March 30, futures for both West Texas Intermediate Crude and Brent Crude were at a three-week high, at around $50 or so per barrel, indicating bullish prices for anything based on petroleum.

However, according to authoritative sources, butadiene prices are starting to fall.

The reason is another well-known factor, in SR and in every other commodity: supply and demand. In the case of butadiene, there was another issue: location, location, location.

Scheduled and unscheduled maintenance shutdowns for butadiene facilities in Asia and Europe placed limits on the availability of butadiene, according to sources who spoke to Rubber & Plastics News and European Rubber Journal.

An unexpected surge of demand for butadiene in China, starting in the fall of 2016 and continuing into 2017, caused Asian butadiene prices to soar as high as $3,000 per metric ton. North American and European prices, though never as high as in Asia, rose accordingly.

Read the source article at Global Rubber Markets News

Global Automotive Rubber Molded Components Market – Forecasts and Trends (2017 – 2022)

The global automotive rubber moulded components sales grew from 65 million during the 2008-09 recession to over 89 million in 2015, with a spike of over 19% during the past seven years. In light of the growing demand for fuel-efficient and less polluting vehicles, the market for lightweight automotive components of higher durability is on the rise. Further, with chemical companies such as Chem-Trend coming up with better release agents and moulding process aids, the market for automotive rubber moulded components is expected to touch USD 45.16 billion by 2021. Technological advancements have been the major trigger for this growth. Innovations such as Ford’s eco-friendly rubber parts using soy oil and research labs trying to come up with better and durable rubber materials like EPDM are expected to drive the market at a CAGR of 6.26% by till 2022.

 

Read the source article at Global Information, Inc. (GII)

Supply and demand of neutral bearish rubber fell sharply

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March, natural rubber continued unilateral decline in the trend continued to continue unilateral decline, and continue to hit a new low, but then encounter, stabilized stabilized, and returned to a technical rebound, which reflects the supply and demand of natural rubber market The relationship is reversed from the background and the essence of the reversal.

Prospects and Strategy Suggestions

Looking forward to April trend, by the international and domestic aspects of the neutral factors of the neutral intertwined effect, in the surrounding Tokyo City, Singapore rubber market both down the trend of deep down, Hujiao market outlook will continue the formation of the original deep down Of the trend, while subject to the global macroeconomic and financial situation neutral factors, although the short-term may fall sharply, but the medium-term may return to the low regional concussion trend, the operation should be short-term low-absorbing high-throwing.

Read the source article at Global Rubber Markets News

C2C certification for Klean Industries’ pyrolysis plant

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Canada-based gasification and pyrolysis waste conversion technologies provider Klean Industries Inc. shares that one of its facilities has become the world’s first tyre pyrolysis plant to receive Cradle to Cradle (C2C) certification. This C2C certification by McDonough Braungart Design Chemistry LLC follows a 12-month study of the Klean Industries production process and the end uses of the recycled carbon and oil products that derive from it.

According to the company, one factor that sets it apart from other tyre pyrolysis technologies is its ability to convert tyre char into products that are utilised by end users in a multitude of product applications. “This is accomplished using our proprietary technologies that produce a recovered carbon black (rCB) to a standard unseen by any other technology providers, hence our commercial success,” shares Klean Industries in a statement. As far as the company is aware, it is currently the only group re-integrating recovered carbon black in new tyres with major tyre manufacturers around the globe.

Klean Industries’ certifications for technology and products include: ISO 9001, 14001, 14064, 14067; CE and UL ECOLOGO certifications; Carbon Footprint Certificates; Green Product Certificate; REACH Certification; EPD ClassII Enviro-Labeling 485 & 486; Cradle to Cradle Certified.

Read the source article at Tyrepress

Bridgestone develops airless bicycle tires

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Tokyo – Bridgestone Corp., together with Bridgestone Cycle Co., Ltd., has developed an airless bicycle tire as part of its “air free concept” technology, the Japanese tire-maker announced 17 April.

The two companies will advance feasibility studies and seek to make this new tire available in the market by 2019.

Bridgestone’s “air free concept” uses a structure of spokes stretching along the inner sides of tires, eliminating the need to inflate tires with air to support the…

Read the source article at European Rubber Journal

Goodyear Will Redeem $700 Million in Senior Notes

AKRON, OhioApril 14, 2017 /PRNewswire/ — The Goodyear Tire & Rubber Company (NASDAQ: GT) today announced it will redeem all of its outstanding $700 million in principal amount of 7.0% senior notes due 2022 on May 15, 2017. 

The redemption price will be 103.50 percent of the principal amount of the notes being redeemed, plus accrued and unpaid interest to May 15, 2017.

Goodyear intends to use the net proceeds from its $700 million offering of 4.875% senior notes due 2027, which closed March 7, together with current cash and cash equivalents, to fund the redemption.

The transactions will result in annual interest expense savings of approximately $15 million beginning in 2018. Goodyear continues to expect interest expense to range between $340 million and $365 million for 2017.

Goodyear is one of the world’s largest tire companies. It employs approximately 66,000 people and manufactures its products in 48 facilities in 21 countries around the world.  GT-FN

Read the source article at PR Newswire

YRC to add Alliance passenger tire brand

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TOKYO — Yokohama Rubber Co. Ltd. is planning to launch a line of Alliance-branded passenger tires in Europe in a move designed to compete with other major tire makers’ associate brands.

Read the source article at Tire Business

Atlas Tire Hosts ATU

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Atlas Tire Wholesale recently hosted the summer edition of their renowned Atlas Tire University program. Besides hearing about the latest tire technologies and products, guests who attended the event also learned about the most up-to-date online marketing and social media strategies.

ATU invited social media expert, Casey Walter from Optimize Social Media in Oakdale, Minnesota to speak about strategies tire retailers can put into practice today in order to better position their companies online to compete in today’s challenging market.

Besides a host of Facebook, YouTube, Twitter, Yelp, Google+ and Instagram strategies, Walter also spoke about online reputation management, and how to deal with disgruntled customers who complain about your tire business on social media.

Atlas Tire also invited Michal Majernik, Manager, Communications for the Tire and Rubber Association of Canada (TRAC) to talk about the latest and most pertinent statistics tire statistics. Majernik also discussed the demise of the Ontario Tire Stewardship program, and explained how Ontario’s tire recycling infrastructure is likely to change in the near future.

In addition to a gourmet lunch, guests of Atlas Tire enjoyed giveaways and prizes throughout the day, as well as an opportunity to network with peers along with tire industry representatives and experts.

Read the source article at Autosphere.ca

Brunei: Reconsider rubber tax

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THE Brunei Government has introduced a tax on rubber-related products. It was not explained why it needed to do this.

The products include stationery items like erasers, rubber bands etc. The tax will be between three to five per cent. This will burden the schools and the students. In these hard times we shouldn’t be burdening the families by making basic school necessities costly, especially for the low income families.

At present companies selling stationery items from Miri are active in Brunei and have taken a huge share of the stationery market. This has badly affected local businesses selling stationary items.

Read the source article at Global Rubber Markets News

Jim Cramer – 6 things causing the market’s spring slowdown

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For Jim Cramer, Thursday’s big bank earnings reports could not be more important to this ailing market. For over 36 years, the stock market has edged up, resulting in overall higher prices and an eight-year streak of bullish sentiment. “But every big move, every move that had really any impact, always had the banks as one of the major leadership groups,” the “Mad Money” host said.

 

Read the source article at cnbc.com