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.

 Natural rubber prices declined in March amid significant market volatility, according to the latest monthly report from the Association of Natural Rubber Producing Countries (ANRPC).

The industry body said in its Monthly NR Statistical Report for March 2025 that the downward trend was attributed to multiple factors, including the postponement of the European Union Deforestation Regulation (EUDR), changes in US tariff policies, and falling oil prices.

Despite strong demand from China in early 2025, market sentiment was dampened by growing concerns over new US tariff measures, which analysts say could reshape global rubber trade flows.

The ANRPC, representing major producing nations including Thailand, Indonesia, Vietnam and Malaysia, projected global natural rubber production to grow by a modest 0.4 percent in 2025 compared to the previous year.

Meanwhile, global demand for natural rubber is forecast to increase by 1.5 percent this year, supported primarily by expansion in the electric vehicle market, according to data compiled from ANRPC member countries.

This growth comes despite concerns of a potential global economic slowdown and complications arising from new US trade policies that could hinder international trade.

Natural rubber, a critical raw material for tyre manufacturing and various industrial applications, has faced increasing price pressures as automotive production forecasts remain uncertain in key markets.

Tyre manufacturer Bridgestone Americas announced it has developed the industry’s first commercially available tyre containing 70 percent recycled and renewable materials, marking a significant breakthrough in sustainable manufacturing.

The demonstration commercial tyre, which will debut at the WasteExpo trade show, is based on the Bridgestone M870 model designed specifically for urban waste collection fleets. It has received ISCC PLUS certification, a globally recognised standard that validates sustainability throughout the supply chain.

Using a Mass Balance approach, the tyre incorporates circular synthetic rubber compounds, circular carbon black, and natural rubber. This method allows Bridgestone to track the quantity of alternative materials used in production.

“The debut of this 70 percent recycled and renewable demonstration tyre is not a glimpse into the future, but the reality of today,” said Steve Hoeft, President, Commercial Truck Group, Bridgestone Americas. “With this tyre and the work done with our supply chain, we’ve created new opportunities with a proven product by meeting the rigorous standards set by the ISCC. This tyre directly demonstrates how Bridgestone can help fleets achieve their sustainability goals now with expertly manufactured premium tyres."

According to the company, a limited production run will be tested on waste collection vehicles later this month.

New monitoring technology

Alongside announcing the sustainable tyre, Bridgestone also revealed a new drive-over system for fleet operators. The technology uses specialised plates to capture tread depth measurements as vehicles drive over them, providing comprehensive data on tyre condition and alerting operators to irregular wear issues.

The system aims to help fleet managers optimise maintenance schedules and extend tyre life through more informed decision-making.

Both innovations align with Bridgestone’s corporate E8 Commitment, which focuses on environmental sustainability and operational efficiency improvements.

Ecolomondo Corporation, a leading Canadian innovator in sustainable scrap tyre recycling technology, has announced that its new milling line at Hawkesbury facility has achieved a major milestone during recent testing by reaching a throughput of approximately 2,700 lbs per hour of recovered carbon black (rCB). This result surpasses the company’s projected target of 2,200 lbs per hour.

When the new milling line is completely operational, it should be able to process 2,200 pounds of rCB per hour and provide a particle size distribution of 96 percent between 10 and 15 microns. It is anticipated that the plant would process more than 1.5 million scrap tyres annually, recovering 1,350 MT of process gas while producing 4,500 MT of recovered carbon black, 5,400 MT of oil and 2,250 MT of steel.

The company expects the commercial production of rCB to start by the end of May 2025. After being contacted, offtake clients told the company that they were eagerly expecting a larger supply of steel, oil and rCB, said the company. Depending on end-product market pricing, the company's yearly income from the sale of these sustainable goods plus tipping fees of USD 145 per metric tonne is expected to reach USD 12.1 million, with an estimated EBITDA of 45 to 50 percent, added the company statement.

Jean-François Labbé, Interim CEO, Ecolomondo Corporation, said, “This is a major achievement that brings the Hawkesbury facility closer to full production and commercialisation.”

Global speciality chemicals company Orion S.A. has launched a new bio-circular carbon black called ECOLAR 50 POWDER to provide coatings manufacturers with a new solution for more sustainable coatings.

ECOLAR 50 POWDER, which is entirely based on bio-circular feedstock, has coloristic qualities that are on par with those of ordinary speciality carbon blacks and includes 100 percent biogenic raw material according to 14C analysis. The coloristic qualities of ECOLAR 50 POWDER, a low to medium colour furnace black, offer moderate tinting strength and medium jetness in mass tone applications. ECOLAR 50 POWDER offers equivalent coloristic performance for full-tone and tinting applications, as well as comparable wetting and dispersion characteristics to conventionally manufactured low-colour furnace blacks.

ECOLAR 50 POWDER outperformed other common specialist carbon blacks in achieving medium jetness in a solvent-borne alkyd/melamine stoving enamel system. It created a similar neutral undertone as well. When tested in a water-borne 1K PU coating system, ECOLAR 50 POWDER created a more neutral undertone and jetness that was on par with other regular speciality carbon blacks.

Tilo Lindner, Vice President Global Marketing – Speciality Carbon Black, Orion, said, “We’re leading the way in advancing carbon black to meet increasing industry demands for sustainable products. ECOLAR 50 POWDER enables coatings formulators to develop truly sustainable products in all kinds of coatings applications.”