Rubber Demand in China to Contract 5% as Truck Sales Tumble

Natural-rubber consumption in China, the world’s largest user, will probably drop this year as slumping truck sales and slowing economic growth cut demand for heavy-duty tires, according to the country’s biggest maker.

Usage may contract as much as 5 percent, said Shen Jinrong, chairman of Hangzhou Zhongce Rubber Co. Shen’s outlook compares with a forecast in June from Chris Pardey, chief executive at Singapore-based trading company RCMA Commodities Asia Group, for a 2.3 percent drop in demand to 3.69 million metric tons.