Loss in Replacement Tire Industry, Affecting the Market Price of Neoprene Rubber

Hamburg, Germany: While the replacement tire sector is experiencing losses, which will eventually influence the Neoprene Rubber market, the automobile industry has been working tirelessly to recover in the European market. According to market estimates, the Russia-Ukraine war, rising energy prices, and inflation have all impacted the European tire market. During the most recent weeks, the pricing trend for Neoprene Rubber fluctuated; nevertheless, the declining profitability of the replacement tire business could hurt its prices.

The European Tire and Rubber Manufacturers Association (ETRMA) claims that, at least in terms of replacement tires, there is not much good news to share from the first quarter. The Association has recently provided its members with the Q1 2023 replacement tire sales figures. The demand for replacement consumer tires overall fell by 12% yearly in the first quarter of 2023. All-season tire demand was practically flat from year to year, rising by 1% in 2023. According to statistics from ETRMA member companies, replacement truck, and bus sales have decreased by 18% in the first quarter despite a 3-million-unit demand, which is again not good for the Neoprene Rubber market sentiments.

Despite the downturns, there were a few encouraging stories for the Neoprene Rubber market. In particular, the replacement tire market is still rather close to where it was before the pandemic. ETRMA said that consumer replacement tire sales were down just 4% from the same time last year, even though truck and bus tire sales were unchanged from Q1 2019. All the above data indicates that the forecast for Neoprene Rubber is not looking positive till now, but market researchers suggest that Neoprene Rubber prices might go upward starting from June 2023.

Although the automotive industry has been attempting to recover in the European market, ChemAnalyst predicts that "the decline in replacement tire sales might plummet the Neoprene Rubber demand in the upcoming weeks, ultimately leading to the decline in its market value."