The production and availability of natural rubber in India is facing huge disruption, despite a constant price hike, small-scale players are under the threat of extinction on the back of several factors. In fact, the All Kerala Small Scale Tread Rubber Manufacturers’ Association increased the price of tread rubber and allied products by INR 12 per kg on the back of hike raw material prices and overhead expenses. But this too seems to be a not a sustainable measure.

In a conversation with Tyre Trends, P P Subair, President, of All Kerala Small Scale Tread Rubber Manufacturers’ Association states that the prices of rubber are going up by almost INR 3-4 per kg daily. It is becoming so dynamic that the prices keep varying throughout the day.

This, he attributes, is on the back of several factors, which include the availability of natural rubber becoming scarce on the back of adverse weather conditions (heavy rain); then there is the reduction in imports due to the non-availability of containers from Thailand and other countries.

Furthermore, the reduction in the availability of labourers, especially in the key state of Kerala where only 30 percent labourers are available (compared to demand) for rubber taping. According to Subair, almost 80 percent of the natural rubber production in India happens in Kerala, with the rest of India including Karnataka, Maharashtra and other states contributing the remaining 20 percent.

“The young generation is not interested in working in this profession, even if people from other states are called for working on rubber tapping, it will still take a couple of months for them to be efficient,” shares Subair. This has also resulted in a significant number of players shutting shop. In fact, Subair states the number of members in the All Kerala Small Scale Tread Rubber Manufacturers’ Association has come down from 1,000 to 300.

He explains that as on 8 August 2024, the price of tread rubber is around INR 250 per kg, yet there is no availability for the raw material.

“Everybody is searching for rubber sheets, but the same problem exists in other states also.”

He claims that at present 75 percent of tread manufacturers are from Kerala, while the remaining are based in Karnataka, Maharashtra, Gujarat, and a few other places. While there are some other states in Northeast India, the quality is not similar, as well as the available quantity is very limited in comparison to the demand in the country.

Subair expects that there may be some relief in the next 2-3 months, in addition to the relief post-monsoon.

But he also expresses concern about the existential crisis looming across the country for the small-scale industry.

“All over India, the small-scale players are suffering in the tread rubber sector. In addition to the challenges, the removal of exemptions for small-scale players in the taxation bracket, we are now faced with 18 percent GST which has impacted the financial health of many players. This has led to wafer-thin to almost no margins for businesses. It has become very difficult to grow or expand one’s business,” he shares.

Then there is the indirect impact due to the crude oil prices on the back of geo-political reasons.

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BDI-BioEnergy International GmbH, Prismore Capital and JR New Horizons (the investment arm of the Rieckermann Group) have jointly acquired Grupo BB&G’s advanced tyre pyrolysis technology through a newly established subsidiary, BB&G Recycling. The joint acquisition marks a significant step in sustainable tyre recycling and the circular economy.

The deal was finalised after Prismore Capital identified BDI-BioEnergy International, co-acquired by Rieckermann in January 2024, as a strategic technology and investment partner. The proprietary pyrolysis technology transforms end-of-life tyres into high-value outputs, including tyre pyrolysis oil (TPO) and recovered carbon black (rCB). These materials can be reintegrated into manufacturing processes, serving as sustainable alternatives for producing new tyres, rubber-based products and plastic compounds.

Through BB&G Recycling, the joint venture aims to further develop the BB&G brand by focusing on three core areas. First, ongoing process optimisation and technological advancements will enhance the efficiency and marketability of the pyrolysis system. Second, the construction of dedicated industrial plants will operationalise the technology at scale, reducing the environmental impact of tyre waste and advancing circular economy principles. Third, the consortium plans to expand internationally, marketing the technology to global markets to address pressing environmental challenges related to tyre disposal.

Miguel Gil Mata, CEO, Prismore Capital, said, “This strategic investment marks a significant milestone in our efforts to strengthen and scale our circular economy vertical. We are excited to collaborate with BDI and Rieckermann to bring this cutting-edge technology to market.”

David Niederl and Manfred Baumgartner, Managing Directors of BDI, said, “BDI is proud to be the technology partner in this joint venture. The innovative tyre pyrolysis technology not only addresses a critical environmental issue but also promotes a circular economy by converting end-of-life tyres into valuable products. This strategic investment also allows us to diversify and strengthen our position in pyrolysis technologies, thereby fostering innovation and technological advancements within the industry.”

Flynn Seidel, Chairman, Rieckermann GmbH, said, “With the tyre pyrolysis technology, our customers in Asia can look forward to the development of new and improved products and high-quality, sustainable options. Leveraging on the Rieckermann Group’s extensive operating network in Asia and MENA, we can effectively market the technology licenses and solidify BB&G’s position and ours as the first-choice industrial solution provider.”

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Chinese industrial equipment manufacturer Sinochem Rubber & Plastics Machinery shipped its first batch of export machinery for 2025 to a high-performance all-steel radial tyre manufacturing project in Vietnam after the liquid-press vulcanising machines passed client acceptance trials at its Yiyang manufacturing facility.

The equipment was transported to Vietnam via sea-rail intermodal routes through Guangxi province, with additional shipments of liquid-press and servo-hydraulic vulcanising machines scheduled for delivery to the Southeast Asian nation.

The shipment represents the initial delivery from Sinochem Rubber & Plastics Machinery’s expanded production of overseas orders this year as the company capitalises on growing demand from Belt and Road Initiative markets across Southeast and South Asia.

Sinochem Rubber & Plastics Machinery has secured multiple large-scale international contracts whilst simultaneously expanding its domestic operations, targeting rubber machinery markets in the region where industrial development has accelerated.

The Vietnamese client, operating from an industrial park near Ho Chi Minh City, previously purchased equipment from Sinochem in 2023 for the high-performance all-steel radial tyre manufacturing project. The Chinese manufacturer customised and upgraded its machinery to support the client’s transition towards more intelligent and environmentally sustainable production methods.

Production lines utilising Sinochem’s vulcanising equipment are currently operating at full capacity, with the all-steel radial tyres demonstrating consistent performance metrics. The Vietnamese-manufactured tyres have gained acceptance in local markets and achieved international sales, generating substantial revenue for the client company.

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The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for April 2025.

A statement from the association says that this month saw the natural rubber market continue to fall for the second consecutive month, primarily as a result of increased tapping activities brought on by favourable weather and worries about the tyre industry's poor demand in the face of ongoing trade tariff uncertainty. Early in April, market mood was negatively affected by worries about the upcoming US tariffs.

According to recent reports from ANRPC member nations (AMC), worldwide NR output will increase by a small 0.5 percent in 2025 over 2024. In 2025, the demand for NR is anticipated to rise at a slower rate of 1.3 percent. The report also emphasises that a slowdown and some correction in demand are anticipated, particularly from the United States, Mexico and the rest of the world. The statement goes on to say that the anticipated slowdown in growth is the result of growing worries about a possible global economic downturn, which are impacted by the difficulties surrounding US tariffs and the likelihood for decreased trade activity with higher import costs for rubber goods.

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Michelin has announced the construction of an initial industrial demonstration unit for the 5-HMF molecule, a bio-based and non-toxic molecule capable of replacing fossil fuel-derived chemicals in a wide range of industrial applications.

The CERISEA2 project was created as part of a collaboration that included several academic, institutional and industrial interested parties. With partial funding from the CBE JU1 at the European level and the ADEME in France, this project represents a total expenditure of EUR 60 million. About 30 direct jobs will be created by it, and operations are anticipated to start in 2026. Located on the Osiris platform in Péage en Roussillon, France, this demonstration unit will have the potential to produce 3,000 metric tonnes of this molecule annually, making it the biggest manufacturing site in the world.

5-HMF, or 5-Hydroxymethylfurfural, is a platform molecule that can have several different derivatives. Because it is non-toxic and bio-sourced, it may be used in lieu of substances that come from oil or other problematic sources. Because of its adaptability and capacity to substitute a variety of traditional molecules, it is referred to as the ‘Sleeping Giant’. This molecule is made from fructose that has undergone green chemistry transformations. As a result, 5-HMF will be among the few monomers that are bio-sourced, non-toxic, industrially accessible in thousands of metric tonnes and made in Europe using European raw materials.

This molecule is already utilised in the production of non-toxic adhesive resins created by Michelin ResiCare, which lowers the exposure of operators and consumers to hazardous materials. The manufacturing of this first industrial-scale equipment will enable cost reduction and supply protection for Michelin ResiCare. Additionally, it opens the door for novel materials to be marketed in a wide range of industries, including electronics, transportation, manufacturing, agriculture, cosmetics and aeronautics. By 2030, the projects show that there might be a market of more than 40,000 metric tonnes.

To establish a manufacturing network for this bio-sourced chemical, 20,000 metric tonnes will be replicated through a licensing system in collaboration with the project's industrial partners. These sophisticated composite materials are opening up areas with significant development potential since they were designed to assure crucial functionalities at a scale smaller than the micrometre.

After finding a source at a high cost and little volume, 5-HMF was added to the Michelin ResiCare formulas for resins meant for use other than tyres in 2016. Initially, this was done for plyboard. Following an early effort with a different partner, Michelin partnered with the IFPEN in 2021 to create a more reliable fructose manufacturing method. Through engineering research and experiments at different sizes, the project will be completed by the end of 2023. 5-HMF is included in all of the new Michelin ResiCare formulas, including those for plyboard, abrasives and moulded components, even though it isn't currently utilised in tyres.

Maude Portigliatti, Director of the Polymer Composite Solutions division at Michelin and a Member of the Group’s Executive Committee, said, “The launch of this initial unit in France, to produce a bio-sourced molecule essential for green chemistry, is a major milestone for taking Resicare’s activities to an industrial scale. Created at Michelin in 2016, this start-up at the cutting edge of innovation will be able to speed up the development of its high-performance and non-toxic resin offers for manufacturers. This new demonstration of the Group’s innovative power, the fruit of years of joint research with our partners, also heralds the creation of a new European industry.”

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