Posted on 3/13/2016
The main use of natural and synthetic rubber is for tire manufacturing. Globally, 70% of all elastomers (natural and synthetic) are consumed for tire and tire products manufacture, says Emanuel Ormonde, IHS Chemical consultant. Approximately, seven gallons of oil are used to produce enough synthetic rubber to make a tire, according to the Rubber Manufacturers Association. Recent lower energy prices result in lower costs for synthetic rubber manufacturers and higher demand as motorists drive more
Two main areas exist where tire producers could benefit from lower oil prices, says Bill Hyde, senior director of olefins & elastomers at IHS Chemical. On the demand side, if miles driven increase, as they have in the U.S. this year, then tire wear also should increase. “We have not seen significant change in tire demand yet, but it stands to reason that it will happen, ...