ISRI2017: Scrap tire markets face multiple disruptions

Tire recycling has come a long way, says tire processing veteran and current consultant Terry Gray of Houston-based T.A.G. Resource Recovery. However, Gray also remarked while speaking at the Spotlight on Tires session at the ISRI2017 convention, some of the end markets for scrap tires are currently facing difficulties, causing a sense of disruption in the overall market. 

Gray said he started in the North American scrap tire processing sector in 1984, when as few as 1 percent of all scrap tires were being recycled. More than 30 years later, the industry can be described as “more mature” he said, with almost 90 percent of scrap tires now being processed for recycling. “That’s a pretty good track record,” said Gray.

The bad news for scrap tire processors are government-related obstacles being faced in several key end markets. Gray said a tax credit that had been available to users of tire-derived fuel (TDF) had expired in some states, “so [energy] plants are failing that had converted to TDF.”

He said officials in one such state, Michigan, are acknowledging they will need to find and boost alternative end markets for scrap tires, but Gray said in many New England states “It’s a real issue and they’ve got their heads in the sand.”

In the ground or crumb rubber markets, the sports field additive market had been emerging as a strong consumer, but that end market is taking a hit from (as yet unsubstantiated) claims that athletes coming into contact with crumb rubber on fields are experiencing health issues, including cancer.

By Gray’s estimate, some 30 percent of sports fields are in regions such as New England and California where regulators are advising turf managers to be wary of using crumb rubber. In 2015, 25 percent of crumb rubber was used on sports fields and another 23 percent as playground surfacing or as mulch, so shrinkage in any of those markets will cause considerable disruption, said Gray.

Gray characterized the rubberized asphalt market for ground tires as often subject to “wait and see” attitudes, but he said the manufactured products sector for molded rubber has been one brighter spot.

J.D. Wang, the CEO of California-based ReRubber LLC, says his company’s investors have been putting most of their R&D resources into the crumb rubber and powder categories, after acknowledging that the firm “has gone through eight years of disruption” itself. “In our first five years, we processed a lot, and failed a lot,” he commented.

ReRubber is now focusing on making rubber powder, researching and opening up end markets for the tire-derived powder to be used in protective and architectural coatings applications. The company is exploring a supply loop that Wang says allows it to “innovate” and conduct research in California, then more rapidly implement the ideas in Asia or “work out the kinks” there, and then bring successful ideas back to the United States.

Offering a point of view from state government, Elizabeth Hoover of the Arkansas Department of Environmental Quality (DEQ) said in that state in the 1990s, TDF used at cement plants represented “about the only markets” for scrap tires.

She remarked that emissions concerns about zinc levels had harmed that market, and now the health questions surrounding the field turf market are presenting a new disruption. Unless scrap tire processors have diversified markets, “you have problems on your hands,” warned Hoover.

Her message to scrap tire processors was that states can provide help in the form of loans for equipment, workshops and conferences and assistance in identifying and developing end markets. She also remarked, however, that because of tight state budgets, “a lot of that [potential assistance] is beginning to dry up.”

ISRI2017 was in at the Ernest N. Morial Convention Center in New Orleans April 22-27, 2017.

Read the source article at Recycling Today

Tire Cord and Tire Fabrics Market: Latest Trends,Analysis & Insights 2023

With only a few companies raking in the highest revenues, the global tire cord and tire fabrics market exhibits a consolidated vendor landscape, observes Transparency Market Research (TMR) in a new report. Small players operating in the market pose considerable threat to the leading players, as they provide cheaper alternatives to products manufactured by bigger companies. Nevertheless, large players usually capitalize on supply agreements and their goodwill in the market.

Read the source article at Press releases

Global Tire Logistics Market to Soar at 5.79% CAGR to 2021: Growth Factors & Trends

Logistics and supply chains for spare parts are unstable when compared with market finished products. Many manufacturing companies are facing setbacks because of an increase in operational costs and a decline in demand from consumers. Vendors of logistics services need to be efficient at services such as data management, IT, and supply chain management. Accurate forecasting of demand involves the systematic and proper planning, purchasing, and ordering of logistics operations. Logistics is the framework that enables the transport of spare parts such as machine components, tools, and equipment required for the manufacture of new vehicles and the replacement of defective parts.

Read the source article at openPR.com

Two Tire Distributors With 20% Upside

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Summary

Both Goodyear and Cooper Tire have had to offset declining revenues by increasing profitability. But the stage is set for this to change.

The tire market is expected to grow at a faster pace than previously seen due to positive consumer trends.

Both tire companies are well positioned to take advantage of these industry tailwinds and should see their top line begin to grow in 2017.

Goodyear Tracking Its Fundamental Value

In July of last year, Goodyear Tire & Rubber (NYSE:GT) was originally one of our 10 most undervalued stocks on the Nasdaq when shares were trading at $26.50 and had a finbox.io fair value estimate of $33.50.

The stock has since jumped 35% and is now trading at nearly $36 per share while finbox.io’s fair value estimate has also risen to roughly $44 per share as illustrated below.

Read the source article at Stock Market Insights

Euro reycled rubber exposure data published

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HELSINKI — The European Chemicals Agency concluded recently there is “at most, a very low level of concern” from exposure to recycled rubber granules.

Read the source article at Tire Business

Global Reclaimed Rubber Market Forecast to 2021 and Key Companies are studied in a Latest Report Offered by The Market Reports

Global Reclaimed Rubber Industry 2017 Market Research Report provides the details about Industry Overview, Manufacturing Cost Structure, Capacity, Growth Rate, Gross Margin, Major Manufacturers, Development Trends and Forecast Analysis.

Read the source article at Press Release Distribution Services

Tires to play critical role in driverless vehicles

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Up to 15 percent of all new cars sold could be fully autonomous by 2030, but for all the potential to be realized, driverless technology must face challenges around safety issues and litigation. …

Read the source article at Rubber and Plastics News

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

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

U.S. auto sales fall 1.6% in March as industry starts to stall after 7 years of growth

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Automakers sold 1.56 million new cars and trucks in March, a 1.6% decline compared with the same month a year ago. U.S. auto industry sales fell short of expectations in March as car sales continued to plummet, raising concerns about rising incentives and bloated inventory even though the pace of new car sales remains robust from a historical standpoint. Automakers sold 1.56 million new cars and trucks in March, a 1.6% decline compared with the same month a year ago.

Read the source article at Detroit Free Press