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It’s well known that supply chains world- hopefully see-ing some light at the end
of the tunnel with shipping prices starting to fall.
Estimates show the 2021 global tyre out- 2020. The OE (Original Equipment) mar- ket is hit by the lower production value of new trucks. The after-market sales sec- tor is struggling with constant price rises, products. However, due to natural mate- rial price rises, even a ‘cheap’ product is still limited, thanks in part to China’s frequent lockdowns, alongside which the The irony is that for some businesses, post-pandemic issues became worse than during-pandemic issues and the tyre industry feels like one of those sectors.
Luckily, during the pandemic trucks had to keep rolling. They were feeding the nation and ensuring essential supplies were in the right places. Buses still ran to ferry those unfortunate enough to have to travel during lockdowns. So, tyres and
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the support around them (such as break- down services) still needed to operate. For the tyre industry, this was a boost we might have taken a little bit of for advan- tage. In March this year, Michelin report- ed a drop in truck and bus (TBR) OEM sales by up to 36 per cent from the same period in 2021. This shows 2021, even during the lockdown, sales were strong. In June this year, there was also a boost in the replacement tyre market but this - ed rise in prices in July. This resulted in a
However, we’re in September now and the drop in shipping costs. Rates have dropped 40-60 per cent from their Jan- uary 2022 high, meaning more import- - crease in availability should add some much-needed liquidity to the market. There are still some concerns about Chi- na’s output but it might be the case that the slack is made up by manufacturers in other parts of the world, who should now next two years show that things are start-
ing to rebound. The war in Ukraine still casts a large shadow of doubt over the whole situation but for economies outside reduction in shipping costs and the avail- ability of space on vessels.
Global synthetic and natural rubber pric- es are also starting to come down; re- cently as much as 16 per cent before a slight rebound. This is good and bad. Part
How is Tyre Supply Going to Change in Next Few Months?
