Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • ETRMA: COVID-19 pummels European tire markets in 2020
      New systems solutions advance the sustainability of automotive weatherseals
      3D mapping, navigation from Conti, others on cusp of mainstream
      The new One: Nokian unveils all-season passenger tire
    • ETRMA: COVID-19 pummels European tire markets in 2020
      R&D, Group 1 oils shift keeps Nynas busy
      The new One: Nokian unveils all-season passenger tire
      USW opposes Taiwan tire makers' dumping counterproposal
    • 3D mapping, navigation from Conti, others on cusp of mainstream
      R&D, Group 1 oils shift keeps Nynas busy
      Motion Industries rebrands as 'Motion'
      Proto Labs to buy e-commerce company 3D Hubs for $280 million
    • New systems solutions advance the sustainability of automotive weatherseals
      Arburg: 2021 Technology Days in June will run for 6 days
      R&D, Group 1 oils shift keeps Nynas busy
      Arburg boosts electric machine business with AMK acquisition
    • Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • Tero Peltomaki named Cimcorp CEO
      Synthomer CEO MacLean to step down by early 2022
      ARP Materials adds technical sales manager
      Jack Murphy joins Akron Dispersions
    • USW opposes Taiwan tire makers' dumping counterproposal
      India decides against extending carbon black duties
      Hot topics at virtual CES: AVs, air taxis and drones
      Paycheck Protection Program funding reopens Jan. 15
    • Editorial: Against a backdrop of turmoil, M&A deals give glimpse of normalcy
      Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
    • Advancements in synchronous drive belt design for industrial and consumer markets
      Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Nova thinks outside the box with sealing tech
      New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • ETRMA: COVID-19 pummels European tire markets in 2020
      New systems solutions advance the sustainability of automotive weatherseals
      3D mapping, navigation from Conti, others on cusp of mainstream
      The new One: Nokian unveils all-season passenger tire
    • Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
    • Bridgestone bets on guayule as alternative natural rubber source
      Synthomer CEO MacLean to step down by early 2022
      Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Selectâ„¢: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
February 07, 2018 01:00 AM

Oil, gas, metals markets expecting continued growth in 2018

Kathy McCarron
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Things are looking up for the mining industry as demand for oil, gas and some minerals is expected to grow.

    Things are looking up for the mining industry as demand for oil, gas and some minerals is expected to continue on a positive trend this year after making gains last year.

    Overall, 2017 was a positive year for the mining industry worldwide, according to Michelin North America Inc.

    "Production did not reach historical maximum, but we believe it grew by approximately 5 percent. In the U.S., production of main commodities (especially coal) also increased compared to 2016," said Karl Litzinger, B2B marketing director, off-highway transportation for Michelin.

    He said improved commodity prices helped miners recover in 2017, and he predicted prices should remain healthier than the lows they reached in recent years, but nowhere near the peaks during the boom.

    "This should result in a continued positive market in 2018. We do not expect a negative trend in 2018," he said.

    An increasing number of mining projects, a growing demand for mining vehicles and an expanding vehicle fleet are expected to drive the global mining tire market as well through 2022, according to TechSci Research in its report, "Global Mining Tire Market by Vehicle Type, by Demand Category, by Region, Competition Forecast & Opportunities, 2012–2022."

    The global mining tire market is projected to grow at a rate of nearly 5 percent a year in value terms through 2022 as a result of rising production and sales of mining vehicles on a global level, the report said.

    Demand for retreaded mining tires also are expected to increase due to their low cost compared with new tires.

    "Reinforcement of mining activities across the globe is the key growth factor of the global mining tire market," said Karan Chechi, research director with TechSci Research. "Moreover, increasing demand for radial tires due to their improved fuel efficiency and reduced wear and tear is expected to further fuel the market in the coming years.

    "Besides that, growing technological advancements in the global mining sector are likely to positively influence the global market for mining tires over the next five years," Chechi said.

    Industrial metals will remain on an upward trajectory over 2018, according to BMI Research, however noting that "premature optimism over the demand boost from electric vehicles will wind down in the near-term."

    U.S. production

    Meanwhile, the U.S. Energy Information Administration (EIA) predicts U.S. coal production will drop by about 2 percent this year after increasing 6 percent in 2017 as demand for U.S. coal exports increased.

    Demand for retreaded mining tires also are expected to increase due to their low cost compared with new tires.

    Production in the Western U.S. and Appalachia regions is forecast to decrease primarily as a result of the projected declines in coal exports.

    Declines in these regions are expected to be offset partially by an increase in interior region production. In 2019, coal production is expected to again decline by 2 percent.

    The EIA forecasts U.S. crude oil production will rise about 10 percent in 2018. If achieved, the forecast production would be the highest annual average on record, according to the EIA.

    Much of the increase in production is expected to come from the Permian region in Texas and New Mexico.

    Growth in crude oil production is expected to result in increased associated natural gas production and natural gas processing, the EIA said.

    Dry natural gas production increased 1 percent in 2017, reversing the 2016 production decline.

    The EIA expects dry natural gas production to climb 9.3 percent in 2018 and by 3.2 percent in 2019. If achieved, the expected 2018 increase would be the highest on record, the EIA said.

    Growth is expected to be concentrated in Appalachia's Marcellus and Utica regions, along with the Permian Basin region, according to the EIA.

    Much of the expected increase in natural gas production is the result of increasing pipeline takeaway capacity out of the Appalachia-producing region to end-use markets. The greater pipeline connectivity contributes to higher wellhead natural gas prices for producers and is expected to encourage production growth, the EIA said.

    Last year the U.S. was a net exporter of natural gas for the first time on an annual basis since 1957, the EIA said. Net natural gas exports are forecast to increase during the next two years.

    Tire trends

    "We expect strong demand across our portfolio of products and services," Michelin's Litzinger said, noting there will be continued strong demand for the giant (63-inch rim diameter) tires.

    "These giant tires are used at the largest and most efficient mines, so it is reasonable that these miners will continue to lead in the market," he said.

    "Customers remain focused on optimizing production and controlling their costs. Total cost of ownership will continue to be a focus area. Customers obviously want to leverage fully the improved commodity market without over investing.

    "We see growing interest in optimizing mining operations to get the most ore for the lowest resource investment," he said.

    There will be challenges for tire dealers who sell mining tires.

    "Smaller-scale mining will remain cost-challenged despite the improvement in commodity prices. These concerns will be felt across the channel," Litzinger said.

    Increased demand would be a welcome development for Michelin, whose Starr, S.C., OTR tire plant is starting a third year of idled production. Michelin suspended operations at the giant earthmover tire plant at year-end 2015 because of slowing global demand, just two years after opening the $750 million factory.

    Michelin said at that time it would maintain the plant and its equipment "on standby" with plans to restart it once market conditions and customer demand improve.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION