By Denna Bowman
A leading US tyres industry analyst predicts demand will improve during 2010.
According to Saul Ludwig: “As I suggested late last year, Chinese imports fell 50% in October and I expected a similar fall-off in November and December.”
Commenting in his latest installment of the “Ludwig Report” in Modern Tyre Dealer magazine he added: “US tyre producers are recapturing market share that has been lost over the last several years.
“With improving demand and factories running full out, pricing will be very firm. You will see far fewer marketing specials from your suppliers.”
Ludwig, a managing director with KeyBanc Capital Markets Inc. based in Cleveland, Ohio, added: “Continental and Pirelli gained market share in 2009 while imports were the ones who lost share.
“I expect 2010 to see much improved tyre demand vs. 2009.”
Towards the close of 2009, Ludwig concluded that tyre demand was already showing signs of improving and that as stocks ran low, manufacturers were struggling to keep up with fresh orders.