The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for December 2025, providing an overview of key developments in the global natural rubber sector.

As per the report, the natural rubber market is positioned in a strategic accumulation phase that belies superficial price indicators. A critical analysis reveals that while US Dollar-denominated prices showed a slight pullback, this was overwhelmingly due to the appreciation of the Thai Baht rather than a decline in intrinsic value. In Thailand, a key producing nation, local currency (THB) prices remained fundamentally firm, underscoring a resilient domestic price floor that continues to support the long-term upward trend.

This underlying market strength is concretely evidenced by price movements in Malaysia. During the reported period of consolidation, Malaysian SMR-20 prices increased by 2.08 percent and latex prices rose by 2.35 percent. These gains in a major producing hub directly contradict a bearish narrative and confirm that underlying global demand continues to outpace available supply. The current market behaviour is therefore characterized as a ‘cumulation pullback’, a necessary corrective foundation following earlier strong gains, designed to build liquidity before the next advance.

Fundamental data supports this outlook. Global natural rubber production for 2025 is anticipated to grow by a modest 1.4 percent. Although the latest demand figures show a marginal adjustment of -0.7 percent, overall market sentiment remains resilient, bolstered by clear recovery signals from the tyre industry. Critically, the market is now entering the seasonally tight ‘wintering’ period from February to May, when latex production naturally declines. The consolidation and strategic accumulation observed in December 2025 have thus established a solid platform. With supply set to contract and demand holding firm, all conditions are aligned for a sustained price rally as the market moves into early 2026.

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Shin-Etsu Chemical has announced a sweeping price revision for its entire range of silicone products, effective for all shipments from 1 May 2026. The adjustment applies to every product handled by the company’s Silicone Division, with increases set at a minimum of 10 percent. Actual revision rates will vary depending on the specific product category.

The decision follows recent developments in the Middle East, which have triggered sharp surges in crude oil and naphtha prices. This has led to a steep rise in the cost of oil-derived raw materials. Additionally, Shin-Etsu Chemical is confronting higher expenses related to manufacturing energy, product containers, packaging materials and logistics, all of which have contributed to the need for a price correction.

Despite exhausting all possible internal measures to reduce manufacturing costs, the company concluded that these efforts alone cannot absorb the mounting cost pressures. Shin-Etsu Chemical is now committed to fully communicating the situation to its product users and securing their understanding of the necessary selling price revisions.

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The Association of Natural Rubber Producing Countries (ANRPC) recently participated in a Hari Raya Open House event. The gathering was organised by Malaysia’s Rubber Development Division, which falls under the Ministry of Plantation and Commodities. This occasion allowed the ANRPC to connect with important figures within the natural rubber sector. By bringing together various industry partners, the open house successfully created an atmosphere of goodwill and strengthened existing relationships.

The ANRPC has conveyed its genuine gratitude to the event’s hosts for their warm reception and thoughtful organisation. The association acknowledged the importance of uniting stakeholders in such a meaningful celebration, which helps reinforce shared goals and collaborative spirit across the sector.

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ARLANXEO has officially opened its Innovation Center Asia (ICA) in Changzhou, China, transforming the former Regional Technical Center into a full-fledged Asian innovation hub. This upgrade significantly strengthens the company’s global research and development network, with a clear focus on serving the local Chinese market as well as broader regional needs. The expansion reflects ARLANXEO’s commitment to advancing performance elastomers through targeted regional investment.

Now boasting larger facilities, an expanded team and new laboratory equipment, the Innovation Center Asia is equipped to handle rubber compounding, processing, physical testing, chemical analysis, battery prototyping and more. A dedicated chemistry lab has been added to support the nearby HNBR plant and global HNBR research activities. Located alongside ARLANXEO’s EPDM and HNBR plants in Changzhou, the centre fosters close customer collaboration to address evolving market needs. It also works in tandem with the company’s Dormagen, Germany, innovation centre, jointly developing new testing methods, exploring advanced technologies and delivering innovative product solutions worldwide.

The inauguration event featured speeches from Herman Dikland, ARLANXEO’s Chief Technology and Sustainability Officer, and Hong Sun, Managing Director of ARLANXEO China. Joining them at the ceremony were company representatives, key customers, local government officials and academic partners from various universities. Their presence underscored the collaborative spirit and shared interest in driving innovation forward.

Herman Dikland, Chief Technology and Sustainability Officer, ARLANXEO, said, “Innovation is a core driver of ARLANXEO’s sustainable growth, and China plays an important role in our global innovation ecosystem. This state-of-the-art laboratory facility puts us in an excellent position to advance our R&D capabilities and reinforce our market position. We look forward to driving frontier innovation together with our passionate and creative China team while bringing China-based innovation into solutions for global markets.”

Hong Sun, Managing Director, ARLANXEO China, said, “The inauguration of the Innovation Center Asia reflects our commitment to supporting the rapid transformation of China’s rubber industry during the 15th Five-Year Plan period. With growing demand for advanced materials and customised formulations, the new centre will further strengthen our proximity to customers, enhance our agility in meeting market needs and better support the upgrading of the entire rubber industry.”

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ARLANXEO has strengthened its role in the synthetic rubber industry by expanding its marketing and sales agreement for EPDM rubber produced by Rabigh Refining & Petrochemical Company (PRC), a joint stock company formed under the laws of the Kingdom of Saudi Arabia. This new arrangement became effective in February 2026, granting ARLANXEO exclusive rights to market all EPDM grades coming from PRC’s facilities, which will continue to be sold under the Keltan KSA product name.

This extension of the Keltan KSA business highlights ARLANXEO’s dedicated commitment to the worldwide EPDM market. By combining the original Keltan line with the Keltan KSA portfolio, the company now offers customers a uniquely broad and comprehensive range of EPDM solutions, ensuring a more complete service across diverse applications.

John Sawaya, Chief Business Officer, ARLANXEO, said, “Through this expanded agreement, we are further enhancing ARLANXEO’s position as the global supplier for EPDM synthetic rubber.”

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