Rubber consumption tops 3 million mt.

For the first time since 1979, the domestic consumption of natural and synthetic rubber rose above the three million metric ton mark in 1994, the Rubber Manufacturers Association said.

"The combination of record levels in the tire sector along with strong growth in all non-tire markets helped sustain rubber consumption at a level not seen since the late '70s", said RMA President Thomas E. Cole. Final total rubber demand in 1994 is expected to reach approximately 3.12 mmt, 5% higher than the level of 2.967 mmt achieved in 1993. Total demand in 1995 will again show annual growth, at a more moderate pace of 1% over 1994. The long term trend through 1999 is expected to result in an annual compound growth rate of 1%.

Total natural rubber demand (dry and latex) rose to 1.006 mmt in 1994, 4% higher than the 966,700 metric tons registered in 1993. Natural rubber consumption in 1995 will grow to 1.010 mmt, less than a 1% increase over 1994. Long term natural rubber demand through 1999 is expected to be relatively flat.

Synthetic rubber demand posted strong growth in 1994, rising to approximately 2.114 mmt, almost 6% above the level achieved in 1993. Total synthetic rubber -- more demand will again grow in 1995, reaching 2.145 mmt, a 1.5% increase over 1994. The committee predicted an annual compounded growth rate of 1% in total synthetic rubber demand through 1999.

1994 proved to be a strong year in all sectors of the synthetic rubber industry, and due to the continued expansion of both the tire and non-tire industries that consume synthetic rubber, gains are likewise expected in 1995. Styrene-butadiene, polybutadiene and nitrile showed annual growth in the area of 5-7% in 1994, while demand for EPDM was up 15% over 1993. In 1995, demand in these sectors will grow at a pace of 1-2%, and expectations through 1999 are for an annually compounded growth rate of 1%. Similarly, growth in polyacrylates, polyisobutylene, ECO, FKM and other specialty elastomers will proceed along the same path. After achieving a 5% growth in demand in 1994, demand is expected to grow at a compounded annual rate of approximately 1-2% through 1999.

The consensus forecast is based upon a review of RMA aggregate industry reports, aggregate industry reports of the International Institute of Synthetic Rubber Producers, government trade data reports and member domestic growth projections.