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The Association of Natural Rubber Producing Countries (ANRPC), recently released its report “Natural Rubber Trends & Statistics, October- November 2020”. The ANRPC says the world production of natural rubber (NR) fell by 8.5%, year-over-year, to 10.098 million tons during Jan-Oct 2020. Expecting a 10.8%, year-over-year, drop during Nov-Dec 2020, the production during the full year 2020 is expected at 12.597 million tons, down 9.0% from the previous year. ANRPC’s revised outlook represents a downward revision by 304,000 tons or 2.2 percentage points from the outlook for 2020 which ANRPC had reported in September 2020. The outlook reported in Sep 2020 was 12.901 million tons at 6.8% fall. In 2021, the world production is anticipated to recover by posting an 8.6% increase to 13.678 million tons. Even if it increases at the anticipated 8.6% rate, the output in 2021 will remain lower than that in 2019 (13.842 million tons) or 2018 (13. 839 million tons).

In December 2020, the European Recycling Industries’ Confederation – the umbrella organisation for European Recycling Industries – published a brochure on mechanical tire recycling highlighting the organization’s contribution towards circular economy and climate neutrality. EuRIC Brochure presents key facts about mechanical end-of-life tire recycling, which is a major enabler of circularity and climate mitigation for the entire tire value chain. The Brochure describes the current state of play of ELT management with recommendations to overcome key challenges faced by the European mechanical tire recycling industry be them embedded in legislation, market failures or eco-design. It features key numbers outlining the economic importance of the ELT recycling sector as well as its benefits for the environment and society.

Scandinavian Enviro Systems (Enviro) reports that its representative in the UK market, 2G BioPOWER, has been granted the equivalent of EUR 240,000 in state funding for a feasibility study that will investigate the possibilities for the large-scale introduction of Enviro’s recovery technology for end-of-life tires in the UK. According to Enviro, the objectives include investigating the possibilities for recovering oil and carbon black from domestic end-of-life tires.

The Association of Natural Rubber Producing Countries (ANRPC) reports that the world production of natural rubber (NR) fell 8.7%, year-over-year, during Jan-Aug 2020 to 7.778 million tons. Accounting a 3.8% fall anticipated in the remaining four months of the year, the total production during the full year 2020 is anticipated at 12.901 million ton reflecting a 6.8% fall from the previous year. This revised outlook of the world supply in 2020 is 1.9 percentage points lower than the outlook reported a month ago which was 13.149 million ton by representing a 4.9% fall.

The first seven months of 2020 has witnessed an 8.9% year-over-year (y/y) fall in the world production and a 14.0% y/y fall in world consumption of natural rubber. Based on preliminary estimates available up to July 2020 from individual countries, and anticipated figures for the rest of the year, the world production in the year 2020 is anticipated at 13.149 million tons, down 4.9% from the previous year. This is slightly lower than the outlook for 2020 reported in July 2020 which was 13.195 million tons, down 4.5% from the previous year. The outlook for world consumption in 2020 is scaled down to 12.544 million tons or down 8.9 % from the previous year. The consumption outlook for 2020 as reported in July 2020 was 12.754 million tons, down 7.3% from the previous year.

Swedish tire pyrolysis equipment manufacturer and operator – Scandinavian Enviro Systems – reports about market expectations that can significantly influence the company’s profitability. Below, we cite the company’s recent press release describing the matter. Over the past year, Scandinavian Enviro Systems AB (publ, “Enviro”) has noticed a dramatic increase in interest in the oil — known as pyrolysis oil — that the company can extract from end-of-life tires using its proprietary technology. The oil has a high bio content due to the natural rubber in tires, and in the company’s opinion is therefore of great interest to many players in the market because it could replace fossil-based alternatives.

The company receives truck tires from local businesses, separates the steel from the rubber and crushes the rubber into a crumb that is fine enough for roads, playground surfaces and rubber ramps. Mr. Pennington says that the company recycles 100% of tires arriving to the facility. The general manager said while other companies exported old tires for recycling, their aim was to recycle material in the Western Australia. According to the general manager, after cutting the tire walls, they stripped the rubber from the bead, extracting the steel to go to scrap metal recycling.

The ANRPC reports that the Chinese economy grew by 3.2% in during the second quarter of 2020 (April to June) by beating the expectations after the 6.8% fall in the first quarter. By providing evidence of improving manufacturing activity, the manufacturing Purchasing Mangers’ Index (PMI) of China touched 51.1 in July. In the U.S., in a major initiative to revitalize the economy with expanded employment benefits ahead of the presidential elections to be held in November, a trillion-dollar coronavirus aid package is in the process of approval. Driven by stimulus policies and improving economic activities in China, the U.S., and other major consuming countries, the world consumption of natural rubber (NR) is anticipated to enter into positive territory by increasing 2.6% year-on-year growth during the three months from August to October 2020 after the 15.0% fall posted in the first half of the year, and 2.7% fall in July.

The recent news from Continental – a prominent tire manufacturer – proves that the industry is expected to becoming more sustainable which, in turn, will affect tire recycling industry as well. In late June 2020, Continental received the Red Dot Design Award for Urban Taraxagum – bicycle tires made from dandelion rubber. Moreover, the tire manufacturer recently made a very positive announcement related to sustainability. Now that Claus Petschick heads new Sustainability department, sustainable management is expected to become an integral part of Continental’s “Vision 2030” strategy program. Besides, the company will continue engaging in consistent research and development of new technologies, alternative materials and environmentally friendly production processes in the tire sector.