Association of Natural Rubber Producing Countries (ANRPC) said, based on the preliminary estimates, the outlook of world production of natural rubber (NR) is likely to fall 12.4%, year-on-year, to 897,000 tonnes in February 2021. However, the global NR consumption is estimated to recover at 47.5%, year-on-year, to 1.103 million tonnes during the same month too.

“As a result of this favourable market fundamental amid the seasonal wintering in most NR producing countries, it has supported the upward trend observed in average monthly prices across key physical markets during the reference month,” said ANRPC.

Crude oil prices in February 2021 which posted a 13.7% growth averaged at US$62.28 per barrel while comparing to January 2021. In the block rubber market, the average price of SMR-20 and STR-20 have recorded a 6.1% and 4.7% growth, respectively. The similar observation shared in the rubber sheets market where average price of RSS-3 in Bangkok recorded an increase of 3.6% to US$2.25 per kg and RSS-4 at Kottayam market averaged at US$2.14 per kg in February 2021 against last month.    

“Despite the global economic recovery is driven by the positive economic data in US and China, there are other efforts from regional economic cooperation which may boost the economic activities within the region such as Association of Southeast Asian Nations (ASEAN) is considering of digital vaccine passport while European Union proposed to have Digital Green Pass to accommodate the safety movement around or within the region, respectively. However, people are still worrying about the efficacy of coronavirus vaccines to the fast-spreading variants such as United Kingdom, South African and Brazil to achieve herd immunity so that the world can revert to normalcy,” said the association.

 

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Bekaert has officially finalised its acquisition of Bridgestone’s tyre reinforcement operations in China and Thailand, after securing all necessary regulatory approvals and meeting standard closing conditions. The deal, now fully completed, marks a significant step in the Belgian company’s expansion strategy.

The transaction brings under Bekaert’s control two production facilities: Bridgestone (Shenyang) Steel Cord Co., Ltd. in China and Bridgestone Metalfa (Thailand) Co., Ltd. in Thailand. These plants specialise in manufacturing high-quality tyre cord products exclusively for Bridgestone tyres, and they will continue to supply Bridgestone under the new ownership, further deepening the longstanding partnership between the two firms.

Financially, the acquisition is expected to add roughly EUR 80 million to Bekaert’s annual consolidated sales. The EUR 60 million cash consideration for the deal was funded from the company’s available cash reserves.

Curd Vandekerckhove, CEO Rubber Reinforcement, said, “With the completion of this acquisition within our Rubber Reinforcement division, we are pleased to officially welcome the plant teams in China and Thailand to Bekaert. Our immediate focus is on a smooth transition and operational continuity while continuing to serve Bridgestone as a key strategic partner. The completion of the acquisition further strengthens the position of Bekaert in the tyre cord market, expands the global manufacturing footprint and deepens our longstanding partnership with Bridgestone. A long-term supply agreement ensures continued delivery of high-quality tyre reinforcement within a trusted supplier model.”

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The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for March 2026, revealing a market that turned external pressures into clear price gains. While February had hinted at shifting dynamics, March provided proof of the industry’s core strength, with prices rising across all major grades and trading hubs despite an unusually challenging global environment. A 3.4 percent drop in monthly output and a dramatic 42.51 percent spike in Brent crude prices allowed natural rubber to advance rather than retreat.

Benchmark grades recorded widespread increases. In Kuala Lumpur, SMR-20 reached an average of USD 2.04 per kilogramme, while Bangkok saw STR-20 climb to USD 2.20 and RSS-3 jump to USD 2.56 per kilogramme. Kottayam’s RSS-4 averaged USD 2.35, and centrifuged latex in Kuala Lumpur rose sharply to USD 1.72 per kilogramme. Futures markets echoed the trend, with Shanghai’s May contract averaging CNY 16,662 per tonne and Singapore’s June contract closing at USD 1.95 per kilogramme.

The supply situation tightened considerably. Global March production is forecast at 786,000 tonnes, with Thailand’s output falling to 164,000 tonnes as southern growing regions endured temperatures of 42 to 43 degrees Celsius and rainfall up to 69 percent below normal levels. These punishing conditions sent a clear message that the market can absorb demand without chaotic price swings, a sign of a maturing commodity sector.

Demand told a similarly positive story. China’s natural rubber consumption surged from 446,000 tonnes in February to 610,000 tonnes in March, supported by a manufacturing PMI of 50.4, a 74.4 percent monthly rise in vehicle output, and a 130 percent annual leap in new energy vehicle exports. Chinese imports jumped 39.03 percent month-on-month to 629,800 tonnes, while Vietnam, Malaysia and Thailand boosted exports by 47.34 percent, 13.73 percent and 8.3 percent, respectively.

The oil market further strengthened natural rubber’s competitive edge. With Brent crude averaging over USD 101 per barrel and peaking at USD 126.69 on 31 March, synthetic rubber became significantly less cost-effective, giving tyre makers a strong incentive to favour natural rubber. Policy moves also bolstered confidence, including Malaysia’s replanting aid increase to RM 20,000 per hectare and a new Indonesian research partnership on high-yield rubber tree genetics.

Looking ahead to the second quarter, the market enters the seasonal low-yield period with firming demand. New energy vehicle growth across Asia, an elevated oil floor, replanting investments and tightening supply all point to constructive pricing. Risks like trade disputes, weather extremes and geopolitical tensions remain, but March data shows an industry turning uncertainty into opportunity.

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Sailun Group, a prominent player in the global tyre industry, has taken a leading role in advancing sustainable natural rubber practices. As a core raw material for tyre manufacturing, natural rubber requires ecological protection and a stable supply, both essential for the sector’s high-quality development. In 2025, the company, as a member of the Global Platform for Sustainable Natural Rubber (GPSNR), initiated a project focused on sustainable livelihoods and ecological education for smallholders in eastern Thailand under the GPSNR Shared Investment Mechanism.

This initiative unites strategic partners across the natural rubber value chain, including the Rubber Authority of Thailand’s Rayong office and Save the Children Thailand. Through multi-stakeholder collaboration, the project aims to foster a more sustainable natural rubber ecosystem. Recently, Sailun Group invited GPSNR Chief Executive Officer Stefano Savi and his delegation to Thailand for a field visit to review the project’s interim achievements, reflecting the company’s ‘eco+’ sustainability strategy and its active role in global governance for sustainable natural rubber.

Eastern Thailand’s natural rubber industry supports millions of smallholder households, and the project directly addresses the needs of 500 such farmers. Targeted training programmes have been delivered on environmentally responsible tapping techniques and regulatory compliance, including guidance on the European Union Deforestation Regulation. An innovative consultation network comprising one central hub, eight fixed stations and five mobile units now provides ongoing support on policy interpretation and practical problem-solving.

A structured and replicable knowledge system has been developed, including training materials on low-impact tapping and compliance. Special emphasis is placed on encouraging women and young people to participate, promoting intergenerational knowledge transfer. During the visit, the delegation held technical discussions with Rayong officials on sustainable tapping and rubber tree management, inspected standardised production lines and logistics facilities and reviewed the consultation stations, praising the integrated technology, services and compliance support model.

To address challenges such as improper tapping and soil degradation, five GPSNR demonstration plots have been established. Smallholders receive free organic soil improvement packages and professional tapping tools, alongside systematic training on sustainable soil management. The delegation observed pH monitoring systems and noted improvements including reduced soil acidity and better growing conditions. Direct engagement with farmers provided insights into practical challenges, and the delegation commended the project’s pragmatic approach to strengthening ecological cultivation and long-term productivity.

Beyond livelihood improvements, the project prioritises education through infrastructure upgrades at three schools attended by rubber farmers’ children. In partnership with Save the Children Thailand, ecological education corners with tailored curricula and drawing competitions have been set up. A scholarship programme supports disadvantaged students. The delegation visited Rayong Guanghua School and Banraijandee School, reviewing improvements and awarding scholarships, while discussions explored future collaboration on integrating sustainable natural rubber development with children’s ecological education.

Since implementation began, notable interim results have been achieved across multiple rubber‑producing communities. Smallholders’ sustainable production capabilities have significantly improved, while more children engage with nature and understand the natural rubber industry. This dual‑impact model of economic empowerment and environmental stewardship guides future efforts. Sailun Group will continue leveraging its industry leadership and the GPSNR platform to deepen collaboration with partners, research institutions and non‑profits, contributing to biodiversity conservation, supply chain resilience and high‑quality sustainable development across the global tyre and natural rubber industries.

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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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