Rubber use increase of 1.3% predicted.

Domestic consumption of natural and synthetic rubber is expected to increase by 1.3% in 1995 compared to 1994, according to the Rubber Manufacturers Association. The RMA further predicts that long-term growth rates for rubber demand will be modest through the year 2000.

"Signs that the U.S. tire market and the economy in general will grow again in 1995, speak well for another annual increase in domestic rubber demand in 1995," said Thomas E. Cole, president of the RMA. Total demand of natural and synthetic rubber is expected to reach 3,159,200 metric tons in 1995, compared to the level of 3,119,300 metric tons posted in 1994.

Demand of dry natural rubber will increase to 932,000 metric tons in 1995, compared to the 929,000 metrics tons posted in 1994. Latex natural rubber demand will remain flat in 1995, with demand predicted to reach 73,000 metric tons. Annually compounded growth of natural rubber demand through 2000 is expected to be flat.

Total domestic demand of synthetic rubber in 1995 is expected to reach 2,154,200 metric tons, a 1.7% increase over the 2,117,600 metric tons consumed in 1994. RMA predicts annually compounded growth in synthetic rubber demand of approximately 1% through 2000.

Mixed growth rates, short and long term, are expected in the individual sectors of the U.S. synthetic rubber industry. SBR demand is expected to increase by 1% in 1995 as compared to 1994, as well as on an annually compounded basis through 2000. Demand for nitrile dry is expected to grow by 5% in 1995 over 1994, whereas annual growth through 2000 is expected to be under 1%.

Domestic demand of polybutadiene and EPDM is expected to grow by 2% in 1995 over 1994, but register annual growth of less than 1% through 2000. Similarly, growth in sectors such as butyl, polyisoprene, polychloroprene, CPE and others is expected to record 1995 annual growth rates in the range of 2%, with growth rates through 2000 ranging from flat to 1%.

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 participant growth projections.