SR consumption increases in '95, growth expected in '96.

U.S. consumption of synthetic rubber reached 2,193,000 metric tons in 1995, a 3.5% increase over the 2,118,000 metric tons consumed in 1994, says the Rubber Manufacturers Association's (RMA) Rubber Market Analysis Committee. The committee predicts synthetic rubber demand to increase again in 1996, reaching 2,207,000 mt.

"The increased cost of natural rubber is driving domestic consumers to substitute more and more synthetic rubber for natural, and consequently, demand for synthetic rubber will increase while natural rubber demand decreases," said RMA President Thomas E. Cole. Cole also pointed to positive indicators in the U.S. economy as good news for the overall rubber industry through 1996, and indicated that after a downturn in 1997, annual growth will again resume in 1998 and continue through the year 2000.

U.S. NR demand declined slightly in 1995 from the level of 1,002,000 metric tons consumed in 1994, and is expected to decrease again in 1996. Natural rubber demand in 1995 was 998,000 metric tons, and consumption in 1996 is expected to fall to 994,000 metric tons. After another annual decrease in 1997, annual growth is projected to resume in 1998 and reach 997,000 metric tons by the year 2000.

Consumption of styrene-butadiene increased by 4% in 1995 over 1994. The Committee expects average annual growth through 2000 to be in the 1% range. Demand of polybutadiene posted an annual increase of 5% in 1995, but will show average annual growth of through 2000. Consumption of ethylene-propylene increased by 2.5% in 1995, but industry expectations are for annual average growth of only 1% through 2000.

While long-term growth of only 1% is expected for many of the major synthetic rubber sectors (styrene-butadiene, polybutadiene, ethylene-propylene), the Committee predicted that several of the specialty synthetics would experience stronger long-term growth. Consumption of polyacrylates and ECO will increase annually by 2.5% through 2000. Demand of FKM will increase by an average annual rate of 4%, while HNBR is expected to increase annually at a rate of t5% through 2000.