Tire shipments set record.

The Rubber Manufacturers Association said that preliminary figures show that shipments for passenger tires set a record in 1994 and that they expect moderate growth for this year.

"We are expecting passenger tire shipments in 1994 to reach 58.2 million for the OE (original equipment) market, and 170 million for the replacement market," said Thomas E. Cole, president of RMA. "This would represent a 1% increase over the previous record for OE shipments posted in 1977, and a 3% increase over the record for replacement tires posted just last year. The increasing use of passenger tires in light truck applications continues to help fuel this market," he added.

Shipments through 1995 were expected to remain strong, with 59.2 million passenger tires to be shipped to automakers, and 172 million passenger tires destined for the replacement market.

While new shipment levels are being reached, Cole cautioned that this market is not expected to grow at this rate indefinitely. Increased tire wear and general economic trends are just two of the factors which may affect longer term growth in passenger tire shipments.

Imports of passenger tires in 1995 are not anticipated to change significantly from the 46 million units expected for 1994. The forecast for exports calls for a slight increase, from a record 20 million in 1994 to 21 million in 1995.

In the area of light truck tire demand, the RMA anticipates OE shipments to exceed 5.7 million units in 1994, surpassing the high of 4.8 million units set in 1988. OE shipments in 1995 were forecast to fall slightly to 5.6 million. Replacement light truck tires will continue the trend of new industry highs, with 1994 shipments of 25.6 million tires more than 10% higher than the previous record of 22.7 million tires shipped in 1990. Industry forecasters projected that demand in this market would level off in 1995.

Exports of light truck tires are headed for a new high of 3.5 million units in 1994 compared to the previous high of 2.9 million shipped in 1991, and are expected to climb even higher to 3.6 million units in 1995. Imports should reach 5.3 million units by the end of 1994 and remain at that level during 1995.

Demand for OE truck tires will post gains in all categories for 1994 over 1993. Heavy truck tires will post the strongest gains, with shipments of 96,000 units in 1994 compared to 72,000 a year ago. Medium truck tires for new vehicles grew at nearly the same rate, with 4.7 million units expected by year end compared to 3.8 million in 1993. Wide-base and large off-the road truck tires for OE use should see growth of over 5% by the end of 1994 compared to 1993. Continued optimism was not as strong as growth in these markets is expected to taper off, and in some cases turn downward in 1995.

The replacement markets for all these truck tire categories are expected to post similar but smaller gains in 1994 with two segments, heavy and large off-the-road tires marking historical highs. Reflecting the cyclical trend seen throughout the forecast, the RMA did not forecast growth for any of these markets in 1995.

RELATED ARTICLE: Tariff reductions for nine accelerators

The RMA has persuaded the International Trade Commission (ITC) and trade negotiators to include nine imported accelerators used in rubber manufacturing in the list of goods which may be imported duty-free into the U.S. This reclassification has been incorporated into the new General Agreement on Tariffs and Trade (GATT) agreements.

"These nine tariff reductions will result in an annual savings of up to $5 million for all RMA members companies," said Peter Pantuso, RMA's vice president, public affairs.

Under the new legislation, the following accelerators, will be imported duty-free into the U.S.: tetramethylthiuram monosulfide, ethylene thiourea, diphenylthiourea, dibutylthiourea, dipentamethylenethiuram tetrasulfide, N-nitroso diphenylamine diphenylguanidine, di-o-toly-guanidine, and N, N dicyclohexyl-2-benzothiazolesulfenamide.

These chemicals are used in the manufacture of tires, hoses, belting, rings, seats, molded goods and other rubber products and related elastomers.

"Once the new GATT agreements are implemented, a total of nine duty-free rubber manufacturing chemicals will be listed in the Harmonized Tariff Schedule," Pantuso added.

"The Clinton Administration has determined that the new GATT agreements will not go into effect for the U.S. until a sufficient number of foreign countries, including Japan, Canada, Brazil, India and the European Community, have accepted the obligations," said RMA President Thomas E. Cole. "But when enacted, this initiative will help domestic rubber manufacturers maintain a competitive market position in the U.S. and abroad."