Brazil Overview

Brazil is a country of extremes, it is, in Sao Paulo, home of Recaufair, perhaps shown in microcosm. A country that is rich in natural resources is reflected in the sprawling industrial metropolis that is Sao Paulo - and metropolis is not a misnomer as the wealthy city centre with its skyscrapers, flyovers, tunnels, trains, trams and busses, millions of people on foot and on bike, and even helicopters buzzing between buildings is surely a realisation of Fritz Lang's Metropolis. Here the rich and poor live shoulder to shoulder, shanty town next to villas, low rise public housing beside luxury apartment blocks. There is constant development, new build, new roads, new factories, old being bulldozed to replace with the new. The last vestiges of colonial Sao Paolo will soon vanish beneath a sea of modern concrete and industry much as is predicted for the rainforests being eaten into for ranching, sugar plantations, logging and mining.

Having battled its way out of dictatorial juntas and having embraced democracy the Brazilian economy has stabilised. Inflation is relatively speaking more controlled and commerce is increasingly conducted in a more Western, more open manner. The result of these changes is an economy and an infrastructure that is growing.

That means more roads, more transport, more goods shipped and ultimately more tyres used - which nowadays means a growing market for truck tyre retreads (we won't discuss car tyre retreads here as that market is one which is still undergoing rationalisation - BS Colway has ceased production - which opens opportunities for some competitors, but shuts other doors as the firm starts to import Chinese tyres).

Between 2006 and 2007 the truck and bus new tyre market increased from 7.1 million pieces to 7.8 million an increase of 9.85%, at the same time light truck new tyre sales climbed from 6 million to 6.5 million, up 8.33%. This gives a measure of the level of growth in the Brazilian economy.

According to figures from the ABR (Association of Brazilian Retreaders) this increase is not yet reflected in the numbers of tyres being retreaded. However, with retreads standing around 7.6 million in 2007 (they were at 7.7 million in 2001) the retread rate is 1:1, which is very similar to the UK retread ratio. The best guess is that the future holds promise as improved transport links, better roads and load control will lead to better casing condition, perhaps allowing for a higher retread ratio still. Tyre pressure monitoring is being pursued actively in Brazil with a view to improving fuel economy, and the knock on effect is longer lived tyre casings.

It is worth mentioning that compared to Argentina, which is also a large nation, the condition of casings in Brazil is superior due to the nature of the road network. Argentina's highways are said to be harsher, with more broken surfaces, and long higher speed runs which leads to overheating of the tyres and as a result the suitability of Argentinean truck tyre casings is much lower, thus partly explaining that country's lower retreading rate.

As for Recaufair, the nature of the event is changing and the future may hold a more international flavour, a more general approach to the tyre sector, and dare we say it, an increased Chinese presence. For the retreading sector the show remains important and surely must do so if the retread sector is to have any flagship event in this important market for retreading materials and requirements.

Issue 2008/3