Bekaert sees rubber reinforcement demand dip in China, Europe

Brussels – Bekaert’s rubber reinforcement business has reported a decline in volumes over the first nine months of 2024, on lower demand for truck tire cords in China and Europe.

Over the first three quarters, sales fell 11.7% year-on-year to € 1,295 million (-11.7%), reflecting a 4.2% dip due to lower volumes and 6.7% impact from lower raw material and energy costs.

Price and mix effects increased sales by 0.7% year-on-year, while the negative currency impact was estimated at 1.5%, Bekaert reported 22 Nov.

“Volumes were impacted most in China versus a strong comparison year and driven by an economic slowdown which affects truck tire demand,” the Belgian group commented.

This, it noted, was partly compensated for by higher passenger tire cord sales “which has kept utilisation high, albeit at lower price points.”

Bekaert went on to describe the truck tire-cord market In Europe as “sluggish”  in contrast to “resilient volumes” in the US and increasing demand in India where it has expanded capacity.

“In these market conditions, the business unit is focusing on cost efficiency to mitigate the impact on margins,” according to the group’s financial statement.

Sales from Bekaert’s rubber reinforcement JV in Brazil amounted to €130 million in the first nine months, down from € 148 million last year.

Volumes there were up 1%, while process fell by 8% main due to lower raw material costs, with the currency impact pegged at negative 5%.

Including joint ventures, the business unit’s combined sales were €1,425 million.

Looking ahead, Bekaert said the global tire market was “likely to remain at a subdued level for the fourth quarter and into 2025 with tire makers reducing production output to manage inventory levels.”

The Rubber reinforcement unit is, therefore, focusing on costs, mix and business-selection to bolster capacity utilisation, while “pursuing selective growth opportunities such as in India.”