Natural Rubber Price Declines as Glut Develops - Tire Surplus May Develop

[ATeam]

Last November, this piece was published in Expedite NOW: "Truck Tires Grow Scarce While Prices Soar... What You Can Do"

Today, Bloomberg reports that a glut in the natural rubber supply has developed and prices for that commodity are declining because of the economic slowdown now underway in China. Natural rubber is used in making truck tires. A decline in the price of natural rubber reduces costs for tire makers. A significant decline in global tire consumption would tend tend to reduce tire prices.

Based on what industry bigs were saying at the time, I wrote in November that "With the supply of natural rubber decreasing and tire demand increasing, truck tire prices are skyrocketing and the tires themselves are getting harder to find. These conditions are expected to persist for years."

Not anticipated then was the economic slowdown in China that is now underway. The slowdown is leading to a commercial truck tire consumption decline and natural rubber surplus.

 

[OntarioVanMan]

Phil....whats your point?....Prices of tires might decline/be easier to find?

 

[ATeam]

Phil....whats your point?....Prices of tires might decline/be easier to find?

My point (intent) is to provide updated information relating to the piece published in November.

 

[OntarioVanMan]

My point (intent) is to provide updated information relating to the piece published in November.

You have further thoughts on how this might effect our industry...better supply line/prices?

 

[skyraider]

My point (intent) is to provide updated information relating to the piece published in November.

amen, good n fo. Tires and prices have gone crazy , my ancient one ton van , tires at wallys went from 125 to 165 in 2 years, aint it great. 18 wheeler tires are out of sight imho.

 

[OntarioVanMan]

That and the price of oil has dropped quite a bit...another component of tires....

 

[ATeam]

You have further thoughts on how this might effect our industry...better supply line/prices?

Not at the moment.

 

[pearlpro]

I see these storys and I often wonder how much we really know about Supplys and such, Living near one of the Midwests Largest Oil Refining, Gasoline and Diesel fuel producing refinerys, thats just done a 5 BILLION dollar expansion, it created thousands of jobs in our area and depends on the Shale Pipeline thats coming from Canada for its new sources of supply. It always amazes me to see the Flying J, Pilot, Roadranger and Clark Oil, Amaco, Shell, BP, and another dozen brands of fuel trucks all filling the tankers at the same spigot, same prices on there signs, and you hear of tightening supplys, yet Ive never seen a shortage since the 70s.

Are these storys Media driven and then then change or charge what ever were willing to pay, Im sure Tire sales have Plummetted, along with Fuel sales due to prices, a few months ago its a war in the middle east, Iran, Aliens over the Whitehouse, and Fuel, and Oil and Tires all go thru price swings...I just wonder how much of the real cost of these products is reality based meaning real drops in supply, real lack of raw materails, or is it "A STORY" followed by the news and then were hit with shortages when stockpiles are really UNCHANGED....

 

[OntarioVanMan]

Interesting little side story to tire design..

Techsplanation: Tire Tread Technology

 

[Turtle]

It amazes me how you can get refer and non-refer fuel out of the same spigot.

 

[gospelriders]

It amazes me how you can get refer and non-refer fuel out of the same spigot.

i am still amazed that when i put fuel in my tanks it converts it some how into refer fuel

 

[pearlpro]

It amazes me how some Nutjob In Iran can cost all of us Hundreds of Millions of dollars just by saying some ridiculous BS and the news then carries that to Wall Street who then says OMG THE SKY IS GONNA FALL, and the merry go round begins.....when in reality, NOTHING happens, Nothing Changes and we just pay more all to the Benefit of the Acmadinutjob....