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Global Earthmover Tire Market Shortage Update

Written by admin on April 8, 2011

As each month passes the Global OTR situation reaches a new level of complexity. With the huge attention that global commodity prices are attracting we can not turn our heads at the newest addition to the family… OTR Tires. Although not officially defined as such, OTR Tires now display the aggressive characteristics of rapid growth [...]

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Management and Maintenance of Earthmover Wheels and Rims

Written by Robert Rasanen on April 8, 2011

Here is some helpful information about taking care of OTR tire wheels and rims. Earthmover wheels and rims are unique in the fact that they are essentially part of a pressure vessel which is being continuously assembled and disassembled. In addition they are subjected to various conditions, extreme loads, chemical reactions, stress and shock through [...]

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Heat vs. the OTR Tyre

Written by Tom Stephenson on April 8, 2011

Below is a great summary of the dynamics and effects of heat generation in earthmover tyres: As a continuation of our “Enemies of a Tyre” series I would like to continue by discussing the effects of heat on an OTR tyre. During normal operation tyres will generate heat. This is caused by the continual flexing [...]

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Media Manipulation

Written by Featured Blogger on April 23, 2008

I write, and speak frequently with people, about our industry’s public image. As I have often said, one problem is that we have no image with a lot of people. It is amazing how many people in ‘developed’ countries think that mining is a thing of the past. Presumably they think all the world’s metals [...]

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EARTHMOVER Tire Market Report

This report provides end-users a roadmap of the information they need to have regarding up-to-date "Open Market" OTR prices, past and current monthly trends, natural rubber price fluctuation, and large equipment sales figures. Get the Report

Caterpillar Profit Beats Estimates as Mining Demand Rises

January 26, 2012
Jan. 26 (Bloomberg) -- Caterpillar Inc., the largest construction and mining-equipment maker, posted fourth-quarter earnings and forecast full-year profit forecast that topped analysts' estimates as demand rose for shovels and trucks.

The company is betting on further growth in the mining industry with its acquisition of Bucyrus International Inc. in July for $8.8 billion including debt, which added shovels and drills to its product range. Caterpillar also agreed in November to buy Hong Kong-based ERA Mining Machinery Ltd. for as much as HK$6.89 billion ($890 million).  Read More

Mining drives heavy equipment sales growth in 2011

January 19, 2012
Australia’s construction and mining equipment market continued its rise from the doldrums of the GFC, driven by mining sector demand for heavy equipment.

Komatsu 960E-1 Haul Truck

Industry group Construction and Mining Equipment Industry Group (CMEIG) and auctioneer Euro Auctions say demand for both new and used equipment has increased and that sales growth is expected to continue into 2012. Read More


Titan signs $100 million tire deal with Caterpillar

January 18, 2012
Titan Tire Corp. has signed a multi-year OTR tire supply contract with Caterpillar Inc. The three-year agreement begins this year.

The value of the contract in today’s dollars is expected to exceed a minimum of $100 million. Read More


OTR Tire Conference Hotel Extends Deadline

November 15, 2011
TIA has arranged an extension for hotel reservations for its upcoming OTR tire conference in Rancho Mirage, California.  The base hotel for the event is full, and overflow registrations are for the Augua Caliente Casino Resort Spa.  Read More


Bridgestone Boosting OTR Tire Capacity

November 15, 2011
Production of small and medium-size OTR radials for contstruction and mining vehicles will be increased at Bridgestone Corp.s Hofu plant in Japan over the next couple of years in order to meet steady global growth in demand. Read More

Supply and Demand Remains Pivotal for Mining Tyre Prices

July 1, 2011
Michelin’s Jock Aitken told T&A he expects demand for original equipment OTR tyres to be “huge”, with shortages remaining within the sector over the next three to four years. Bridgestone UK’s OTR sector product manager Barry Coleman shared with T&A that demand within the mining sector is very strong at present and “Bridgestone is producing at full capacity in terms of tyre supply on a global level and our supply across the whole EM product line is only limited by the number of tyres we can produce.” This is a condition, he added, that is shared by all major competitors.  Read More
 

New Shearography Equipment: Non Destructive Testing for 53/80R53 Giant Mining Tyres

June 30, 2011
The latest Earthmover / OTR tyre sector product from Steinbichler Optotechnik is the Intact 4300 tyre shearography machine. This unit machine is designed for the non-destructive testing of giant OTR tyres with an inner diameter between 45 and 63-inches, a width of 550 to 1550 mm and a maximum weight of 7500 kilograms. This most recent addition to the Intact series can clearly detect non-visible separation in the bead, sidewall and tread area within 20 minutes, enabling the easy identification of areas where belt separation has occurred. The first Intact 4300 is already in service with Togliatti, Russia-based company Povolzhskaya Shinnaya Kompaniya, the German manufacturer reports.  Read More
 

Rubber price to remain strong: DBS Vickers

June 29, 2011
Natural rubber prices are expected to remain strong with the Technically Specified Rubber 20 (TSR20) grade being maintained at an average of US$4,251 per tonne next year and US$4,157 per tonne in 2013.

The rubber grade currently fetches US$4,200 per tonne.

DBS Vickers Research (Singapore) Pte Ltd, in its regional rubber research note today said, the strong price is due to growing automotive demand from emerging countries and tight supply.  Read More
 

 Mining Boom Makes Truck Tires Pricier Than Porsches, Condominiums in Miami

June 29, 2011
China’s insatiable demand for commodities has prompted a tripling in the price of mining truck tires, making them more expensive than a Porsche 911 Carrera S type or a condominium in Miami.

Prices for tires about 3.5 meters (11 feet) across, used on the Caterpillar Inc. trucks that haul iron ore and coal, have touched $100,000 on the spot market, according to Leighton Holdings Ltd. (LEI), a contractor for mining companies including BHP Billiton Ltd. (BHP) and Anglo American Ltd. Prices rose as high as $150,000 in 2008.

That compares with contract prices of about $30,000, according to Roesler Tyre Innovators GmbH, which retreads so- called off-the-road tires. Demand from China, the world’s biggest metals buyer, drove copper, iron ore, gold and coal to records this year, forcing companies to compete for the equipment and labor needed to mine them.

“We fear the situation will become as tight as in 2007,” Paul Roesler, Read More
 

WSJ: Caterpillar Expects New Rival To Emerge From China

June 29, 2011
GOSSELIES, Belgium (Dow Jones)--Caterpillar Inc. (CAT) expects a new rival in the heavy-machinery sector to come out of China "in the next few years," said Doug Oberhelman, its chief executive.

"There are all these companies [in China], and there's consolidation happening, and you just know that one or two will emerge as a serious rival," he said in an interview Wednesday at the U.S.-based company's sprawling factory here in southern Belgium.

Currently, Caterpillar's main competitors in the market for construction and mining equipment are Volvo AB of Sweden and Komatsu Ltd. of Japan.

The prospect of China's emergence as a threat in a market Caterpillar has dominated for so long is a big reason why Mr. Oberhelman, a former economist who took over the Peoria, Ill., company last July, has become one of the rare CEOs who still campaigns hard for international-trade deals. Read More
 

Mining sector demand driving Bridgestone’s off-road business

June 28, 2011
product supply in the EM tyre sector is presently restricted by global production capacities. While this applies to many manufacturers, Bridgestone’s global customers are also facing supply issues in the wake of the March 11 earthquake and tsunami in Japan. All Bridgestone OTR/EM tyres sold in the UK are manufactured in Japan. The tyre maker produces these in three factories – Shimonoseki, Hofu and Kitakyushu. The last of these was opened only two years ago and has been earmarked for capacity expansion to meet global demand for large and ultra-large off-road mining and construction radials. While none of the three plants are located in hard-hit regions of Japan and no damage was reported, rolling power cuts are still an issue affecting production. Mr. Coleman adds that further pressure on availability is coming from the huge demand for off-road tyres within Japan due to the rebuilding projects currently underway in earthquake and tsunami-affected regions. Read More

Natural rubber prices tumble, follow global market cues

June 28, 2011
Natural rubber (NR) prices tumbled heavily on Monday, mainly on account of the sharp fall in prices in the overseas markets. The market of RSS-4, the Indian bench mark grade, on Monday quoted Rs 210 a kg, lower by Rs 6 from last week’s closing rate.  Read More
 

MINING equipment supplier WesTrac has warned of a looming tyre shortage

June 10, 2011
Speaking at a Melbourne Mining Club lunch yesterday, WesTrac managing director Jim Walker said mining companies should brace for a shortage of the tyres ... in the new year.

In the middle of the previous mining boom, a demand-fuelled tyre shortage slowed some mine expansions and crimped supply, contributing to booming commodity prices before tyre makers were able to boost capacity and catch up to demand.

"The tyre companies are saying 2012 will be back to what it was before," Mr Walker said.

"We're not there yet but we're all looking at what's going to happen in early 2012 with tyres."

Growing demand for trucks for multi-billion-dollar expansions, such as those planned by Rio Tinto, BHP Billiton and Fortescue Metals Group... Read More
 

Apollo Tyres plans global push to drive into top 10

June 10, 2011
Apollo Tyres is planning big. Having grown into a $2-billion company in 35 years since inception in 1976, India's largest tyre maker now plans to grow three times to $6 billion in the next five years. The aim is to break into the global top 10 tyre companies. Apollo is reportedly ranked seventeenth now.

A bigger export plan is under implementation in Indonesia. Apart from the general demand for BIAS tyres and truck radials, the concentration of opencast mining activity offers a lucrative market opportunity for high tonnage (and high value) off-the-road (OTR) tyre market.

“We are manufacturing 51” – 57” high tonnage OTRs in India for exports to Indonesia. There is little market space for such products in India,” Mr Sharma told Business Line adding that two such consignments were exported to the archipelago.  Read More
 

Caterpillar can't make mining trucks fast enough.

June 9, 2011

DECATUR - Caterpillar Inc. is jamming its mining truck production pedal to the metal and yet it still can't make them fast enough to satisfy world demand.

Speaking to analysts in New York, Caterpillar officials said the first quarter of 2011 had been its best ever with an operating profit of more than $1.8 billion on sales and revenues of $12.9 billion for the quarter. And yet the numbers could be even better, the company said, if factories like the Decatur plant, which makes the world's biggest mining trucks, were able to build the giant machines at a faster rate. Read More

Cat Boss Sees Tire Shortage Looming

April, 8, 2011
The chief of Caterpillar's global mining group expects a "serious tire shortage" in that sector by the end of 2011, according to a new Reuters report.

Caterpillar Global Mining President Chris Curfman, speaking to Reuters during a copper mining conference in Chile, said, "By the end of this year, or early next year, we will be in a potentially serious tire shortage situation. There is a lot of truck demand, a lot of big tractor demand. Lead times are stretching out now and we are seeing some supply chain issues."

Curfman suggested the shortage could mimic the tire plight six years ago, when Caterpillar and other equipment makers were caught by fast rising tire demand that choked off OE supplies. That led to significant equipment and tire delays even as demand was increasing. Read More
 

Demand Pushes Nokian to Second Russia Plant

April 7, 2011
At the company's annual general meeting today, Nokian Tyres president and CEO Kim Gran will share plans about the construction of a second factory in Russia. This new plant will be erected alongside Nokian’s existing plant in Vsevolozhsk.

“Market outlook has strengthened clearly and we need more production capacity,” reported Gran in a statement prior to the meeting. “We, together with the local authorities, are preparing a new plant next to the current one, which will increase our annual car tire capacity by five to six million tires. Negotiations about tax relieves and infrastructure investments are in their final stage.”  Read More

 

Natural rubber jumps to Rs 240/kg on strong global cues

April 4, 2011
New Delhi, Apr 4 Natural rubber prices on Monday jumped by Rs 7 to Rs 240 per kg in the domestic spot markets, largely on the back of strong global cues.

Natural rubber prices were ruling at Rs 233 per kg on April 2 in the domestic physical markets, Rubber Board data said.

“Natural rubber prices have been rising in the international physical and futures markets due to news of floods and mudslides in Thailand, which will affect the rubber supply in the markets,” said Mr George Valy, President, Indian Rubber Dealers Federation.
 
According to experts, natural rubber exports from Thailand, the world’s biggest rubber exporter, may come down because mudslides have devastated rubber plantation areas and a forecast of further heavy rain.  Read More

 

Commodity price index climbs to new high

April 1, 2011
The Reserve Bank of Australia's index of commodity prices rose 0.6 per cent in March from February, reaching yet another record high as prices for crude oil, coal and gold climbed.

That followed a downwardly revised increase of 1.4 per cent in February. The index was up a massive 41 per cent in special drawing right (SDR) terms, compared with March last year. The index reading of 134.2 far surpassed the 2008 peak of 119.5.

In Australian dollar terms, the index rose by 1.6 per cent in March and was up 32 per cent for the year. The index also hit a record high in US dollar terms, to be up 46 per cent on March last year.

Advertisement: Story continues below The largest contributor to the rise in March were increases in the estimated prices of coking coal, coupled with gains in the price of crude oil and gold.  Read More
 

Indonesia rubber exports to Japan seen falling

April 1, 2011

(Reuters) - Indonesian rubber exports to Japan are expected to drop significantly in coming months as the earthquake and tsunami there last month affected the country's auto industry, a trade ministry official said on Friday.

Global demand for rubber, both natural and synthetic, is forecast to rise to 26.1 million tonnes in 2011 from 24.4 million tonnes in 2010, the International Rubber Study Group said earlier this month.  Read More

Michelin to raise prices on earthmover tires

April 01, 2011
Effective May 1, 2011, Michelin North America Inc. is increasing prices on Michelin brand earthmover replacement tires sold in the United States and Mexico by up to 8%.

The company is citing increasing raw material prices as the reason for the price hike.

Michelin is the latest tire manufacturer to increase tire prices. Here is a rundown.  Read More
 


Danger lurks: OTR tire wheel lock rings can be death trap
 

March 30, 2011
The director of Klinge & Co. Pty. Ltd. in Spring Hill, Australia, wants to eliminate what he said he believes are needless deaths occurring worldwide each year among those working with OTR tires.

Five OTR tire service workers and technicians died worldwide in 2010, according to Mr. Klinge’s presentation to attendees of the Tire Industry Association’s Off-the-Road Conference at the Doral Golf Resort & Spa in late February. That, he indicated, was on top of nine killed in 2009, five more in 2008 and one so far this year. Read More
 

Skilled labour shortage hurts mining

March 29, 2011

Top North American miners of gold, copper and iron ore say that a sudden ramp-up of mining projects has begun to squeeze labour and equipment and before long will slow or delay projects.

Executives at the Mining and Steel Summit said skilled labour, especially geologists and mining engineers, were hard to come by and lead times on heavy equipment have been stretched out for weeks or months.

While none said their current plans were being stalled by shortages -the largest miners have lengthy planning processes and lucrative compensation packages to keep top talent -but the day was not long off when projects would feel the crunch.

"If you add up all of the projects people want to bring on line, there are not enough qualified workers to make it happen," said Laurie Brlas, chief financial officer for iron ore miner Cliffs Natural Resources, adding, "You are seeing that everywhere. We are definitely seeing it."

Metal prices have advanced to either record or long-term highs since the start of the year, impelling miners to restart idled mines, expand current projects or develop new ones.  Read More

 

Farmers urged to order tyres now due to shortage

March 24, 2011
Farmers are being warned to prepare for higher tyre costs and to order early due to high raw material prices and a rapidly increasing demand from machinery manufacturers.

The tyre industry is being faced with two issues, according to managing director of Trelleborg, John Westwood. "The original equipment demand has rocketed and it's way ahead of what was predicted. Added to this is the fact that the price of rubber rose by 94% between January 2010 and January 2011. Nearly 42% of this rise was between November 2010 and January 2011."

Part of the problem was a poor natural rubber harvest, although perhaps more influential was a sharp increase in manufacturing both in Europe and worldwide and in particular in China.  Read More