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EM Tire Supply Crisis in Abatement
June 23, 2009
Following the fall in price for many mining products during 2008, global mining growth, which had been strong since late 2003, came to a sudden halt in late 2008. Many mines (notably nickel and diamond) have closed, and others (especially iron ore, copper and coal) have had expansion plans shelved.
This has had a dramatic effect on the supply and demand interaction for EM tyres. The supply situation has eased facilitating the sourcing of most tyre sizes. However, some sizes - in particular some 49", 51" and 63" haultruck and 45" loader specifications - remain in limited supply, but this is expected to ease as tyre manufacturers continue to expand production.
Whether there will be another round of shortages (some commentators are anticipating potential supply problems in 2012) will depend mainly on commodity prices, and tyre manufacturer responses in terms of production output.
