Is Natural Rubber under mortal threat? Is there a possibility that factors like climate change, diseases etc. will bring the plantation industry to its knees?

It is a fact that the traditional rubber growing regions in almost all rubber producing countries in Asia are increasingly constrained by adverse effects of Climate Change. The yield from Hevea in traditional regions is impacted by extreme weather, recurrent cyclones, depression rains and flash floods. The last couple of years have seen interruption to tapping due to unforeseen rains and floods. Another major constraining factor is the recurrent outbreak of new diseases. For example, the outbreak of a new fungal leaf disease (Pestalotiopsis leaf fall disease) reported in Indonesia in 2018 has now spread into around 387,000 ha of mature rubber trees in the country. An estimated 141,000 ha in Thailand, 16,000 ha in Malaysia and 4,000 ha in Sri Lanka are reportedly affected by new fungal leaf diseases.

The low rubber prices that continued over several years resulted in poor maintenance of rubber holdings in almost all producing countries. As resource-starved farmers could not apply fertilizers or adopt proper crop protection measures over several years, rubber trees became weak and lost their resistance to diseases and extreme weather. It is striking to note that the root cause of the decline in yield is the unattractive prices and the resultant poor maintenance of holdings. A major trend reversal of prices can bring glaring positive changes in the natural rubber production sector. The potential national average yield (i.e., the annual production from a unit hectare of tapped trees) is 20 to 30% higher than what is realized now. For example, the average yield in India is currently 1,400 kg per hectare.  But a favorable price can increase the average yield to the range of 1,750-1,800 kg. The country had realized the average yield of 1,823 kg in 2012 when the prices ruled high.  Moreover, a large extent of mature trees which are currently left untapped in the country will come back to production once farmers find the prices attractive.  The country has around 200,000 hectares of mature trees which are left untapped.

More specifically, it is the uneconomic return from the venture that hinders the natural rubber production sector. There is no mortal threat to the supply base as far as prices stay remunerative and the net profit from the venture is attractive. No industry can sustain for a long if it is economically unviable and natural rubber is no exception.

Can a COVID19 like pandemic impact NR industry long term? Do plantations have an effective healthcare plan to ensure labourers’ health and safety?

NR sector globally has almost fully recovered from the impact of the Covide-19. This is particularly true with reference to the global production, consumption, trade, and prices of natural rubber. The prices in key physical markets had crossed over the pre-covid level even by October 2020 and firmed up further since February 2021. 

It is true that the production and processing sectors in Thailand and Malaysia are partly hindered as cross-border travel restrictions prevent migrant workers from neighboring countries to return to works. This issue, to a large extent, is resolved by making use of local workers by providing them necessary skills training. Coming to the downstream manufacturing sector, large number of debt-burden units in the MSME sector are reportedly struggling hard to bring their businesses back to normal.  On the other side, large-scale manufacturing units, particularly those in auto-tyre manufacturing, have made V-shaped recovery driven by the pent-up momentum generated on lifting of the lockdowns. For healthcare rubber products such as rubber gloves, the epidemic has been a major boon. Taking the global rubber industry as a whole, the industry has already come out from the impact of the pandemic.

Workers engaged in large plantations are provided with social security and healthcare facilities as per the regulatory provisions being followed by the governments in the respective countries.

What are the chances of NR getting totally replaced by alternative rubbers? Will this happen? If so, how soon?

NR getting totally replaced by any alternative material is an impossible event in any case. The relative share of NR in the total quantity of new rubber (i.e., natural rubber and synthetic rubber) globally consumed was less than 30% during early 1970s. From that low level, the relative share of NR has gone up to nearly 50% as of now (47.2% in 2020). Synthetic rubber and natural rubber are not competing each other because technical considerations limit the scope of substitution between the two.

Lack of sufficient economic benefits is considered to be a reason for planters looking for alternate crops that can bring faster financial returns. How real is this? How much of rubber plantations have been replaced by other crops?

A total extent of nearly 0.6 million hectares of rubber trees was estimated to have cut down during 2015-2020 period in Thailand, Viet Nam, China, Malaysia, and India for cultivation of other crops or for conversion of land for non-farm uses. The details are given below:

In the case of Thailand, farmers are offered attractive cash incentive (More than US$3500 per hectare) by the government for removing aged rubber trees and planting other crops. It means, the shift from rubber in Thailand is largely policy driven. The case of Thailand is an exception. Generally speaking, the crop shift from rubber over the past few years is caused by the unattractive net profit from the venture.

Is plantation industry too slow to modernise itself, technologically as well as in terms of attracting skilled labor?

It is a fact that technological progress is severely constrained in the smallholder-dominated rubber production sector. The unattractive prices that prevailed over the period since 2015 made the farmers deprived of resources. Although high-yielding clones are available, farmers are generally postponing the replating of aged low-yielding trees due to their inability to meet the huge replanting cost. Another factor that prevents smallholders from replanting is the uncertainty of the farmers over the long-term prospects of rubber cultivation. Unattractive prices have also discouraged farmers from adopting good agricultural practices. Poor return from the venture has compelled farmers to discontinue the application of fertilizers, pest and disease management measures, and proper maintenance of holdings. Larger section of farmers has discontinued the use of stimulants and rain-guarded tapping. However, technological progress continued in large plantations owned by corporates, enterprises, and the public sector.

NR supply has always been unstable due to various reasons. Is this prompting manufacturers to look for other options?

There is no serios supply constraint or supply uncertainty as of now except the seasonal shortage.  Moreover, all the producing countries have huge potential to increase their supply if the prices become attractive.  This point was elaborated earlier.

Is there a campaign being run by alternative rubber sector to put pressure on NR industry?

As stated earlier, NR does not face any threat from alternatives basically due to the reason that the only substitute for natural rubber is natural rubber. In the total global consumption of new rubber (i.e., natural rubber plus synthetic rubber), the relative share of NR is currently around 50% (47.2% in 2020) as against less than 30% in early 1970s. There is no reason to anticipate a fall in the relative share of NR in the next three decades at least.

Are environmental sustainability factors detrimental to NR cultivation?

Environmental considerations can only help NR to gain preference over synthetic rubber, polyurethane, and other materials in various applications because natural rubber is recognised as “an environment-friendly industrial raw material and renewable resource”. The following points establish such a view:

1. Rubber plantations purify atmosphere by absorbing CO₂ and releasing O₂. Based on scientific research undertaken by rubber research institutes in five countries, it is empirically proven that a hectare of rubber plantation annually sequesters as much as 30 tonnes of CO₂ from atmosphere which is near to that of the Amazonian base.
2. Rubber plantations are a good source of timber and bulk of this goes into furniture industry thereby protecting large extent of forests from being logged every year. Secondary branches of the rubber trees go into the fiber board industry and small twigs are used by the rural people as a source of firewood, both indirectly saving forests.
3. Rubber plantations contribute to sustainable soil productivity. Soil productivity has not deteriorated in any of the traditional rubber growing countries which have the history of growing rubber for more than 100 years and already completed 3-4 rubber plantation cycles. 
4. One of the key factors which had adversely affected food crops production in the last couple of years was climate change.  Rubber plantations offer solution to this as it helps balancing carbon level in atmosphere.  Rubber is no longer a mono crop.  Several food crops are grown along with rubber plants in all NR producing countries. The concept of raising rubber plantations as agro-forestry is being increasingly promoted across countries.  It is common among rubber farmers to maintain a portion of their land for other crops.  Moreover, rubber holdings provide sources of ancillary income through activities such as horticulture, fishery, honeybee, goat farming, etc. 
5. In all major natural rubber growing countries, rubber has been identified as a major tool of poverty alleviation and thus helping to achieve the Millennium Development Goals (MDGs).

Are there any concerted efforts being taken up by organisations like ANRPC, IRSG or governments that subsidise NR cultivation?

Developmental activities such as promotion of new-planting and replanting in each country are undertaken by the respective governments only. Among the member governments of ANRPC, Thailand, Malaysia, India, and Sri Lanka provide financial incentives to farmers to promote the cultivation of rubber. The governments usually mobilize the funds needed for the purpose from the same sector by levying a cess on the quantity of NR exported from the country or consumed within the country. The financial assistance cannot be termed as a ‘subsidy’ because the funds needed for the purposes are mobilized from the same sector.

Is it possible to have a globally uniform price structure for NR that can ensure interrupted supply?

In a market driven global economy, commodity prices are largely determined by the forces of supply and demand. This is particularly true in the case of NR which is a strategic industrial raw material coming from more than 10 million smallholder farmers world over. It is not practical to regulate NR prices globally as it is a real challenge to bring together all major producing countries and consuming countries for such a common agenda on terms acceptable to all. (TT)

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

According to the report, the global natural rubber market in October was characterised by a distinct bearish trend in pricing. This decline can primarily due to a significant surge in production and export activities, which were initially stimulated by the higher prices seen earlier in the year. Meanwhile, overall demand has remained relatively subdued.

Looking ahead to the full year, projections indicate a modest 1.3 percent increase in global production for 2025, a figure that follows a recent downward revision for Indonesia. On the demand side, consumption is anticipated to grow by a slight 0.8 percent, influenced by an upward adjustment to Indonesia's consumption data. Despite the current price pressures, market sentiment shows some mixed signs of improvement, particularly within the tyre trade of certain specific markets.

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DuPont commenced construction on a new MOLYKOTE speciality lubricants production facility in Zhangjiagang, Jiangsu Province, East China, on 18 November 2025 with a groundbreaking ceremony that was attended by Senior DuPont leadership from the MOLYKOTE business and the Asia-Pacific region, alongside government officials and key customers. This strategic investment, situated within the Yangtze River International Chemical Industrial Park, is projected to be fully operational by the beginning of 2027. The initiative is a key component of the brand's global expansion, designed to significantly enhance its responsiveness to regional market needs and foster local innovation.

The new plant will primarily focus on meeting the robust and growing demand for advanced lubricant solutions across several critical sectors in China, including transportation, industrial manufacturing, energy and electronics. By establishing a local manufacturing presence, DuPont aims to create a dynamic platform for collaboration with regional customers. This will enable the company to deliver next-generation lubricants with greater speed, precision and agility, ultimately shortening lead times and strengthening supply chains.

The MOLYKOTE brand, with a legacy spanning over 75 years, is globally recognised for its expertise in solving complex lubrication challenges and improving energy efficiency. Its comprehensive product portfolio, which includes greases, oils, anti-friction coatings and pastes, serves the automotive and industrial maintenance, repair and overhaul markets worldwide. Supported by a global network of manufacturing and research facilities, the brand continues to build on its reputation for performance and reliability.

Eugenio Toccalino, Vice President and General Manager, DuPont MOLYKOTE, said, “Today’s groundbreaking is the beginning of a new chapter in our journey to better serve our customers in China, innovate faster and to be a partner of choice for solving wear and friction challenges across industries. This facility will boost local capabilities for application and new formulation development, empowering customer collaboration and response in real time.”

Yi Zhang, Global VP and Regional President, DuPont Asia Pacific, said, “We are thrilled to be breaking ground on the MOLYKOTE China production facility in Zhangjiagang. This manufacturing unit will enable us to address current needs and future trends for speciality lubricants. It reflects our confidence in the long-term potential of customers in China and Asia-Pacific region and reinforces our commitment to deliver faster, more resilient and locally tailored solutions.”

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In a significant move to formalise and advance its environmental strategy, Bekaert has launched 'inhera., a new sustainability label. This initiative underscores the company's dedication to a net-zero future by identifying its most impactful innovations that help industrial customers decarbonise more rapidly. The label serves as a mark of performance and trust, spotlighting solutions that meet stringent, externally validated criteria aligned with frameworks such as the EU Taxonomy Regulation.

The core purpose of inhera is to provide clarity and assurance, demonstrating how specific Bekaert products enable tangible progress in reducing carbon emissions, enhancing resource efficiency and promoting circular economic models. This is increasingly critical in a business landscape where demonstrable sustainability is a strategic necessity rather than an optional consideration. The label currently features a curated selection of eight high-performing solutions across sectors like construction, energy and automotive.

These labelled innovations illustrate a practical path toward cleaner industrial processes. For instance, Ampact magnet wire for electric motors cuts direct CO₂ emissions by 10 percent, while Flexisteel hoist ropes for elevators can reduce daily energy consumption by up to 36 percent. Other products, such as Elyta Ultra tyre reinforcements, deliver significant CO₂ savings per tyre and support circular reuse. Material efficiency is another key focus, exemplified by high tensile steel cores for power lines that use over 30 percent less steel and a next-generation Hose Wire that requires 28 percent less wire. Further offerings, including Bezinal Vineyard Plus and subsea cable armouring wire, utilise low-carbon materials and recycled content to achieve CO₂ reductions exceeding 50 percent.

The name 'inhera' was chosen to reflect the company's belief that sustainability is an inherent component of its corporate identity, deeply embedded within its innovation processes and overall mindset. Bekaert positions the label as more than a certification; it represents a partnership with customers to create measurable environmental impact. Ann-Françoise Versele, VP Sustainability, explained, “Sustainability is inherent in everything we do at Bekaert. Through our products and processes, we aim to leave a legacy of sustainability for future generations. Our partners who choose inhera solutions are choosing to accelerate sustainability and create real impact.”

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Nynas has played a pivotal role in a landmark achievement for Croatia's energy sector by supplying its advanced NYTRO BIO 300X insulating liquid. This fully renewable fluid has been used for the first time in the Croatian market to fill a 630 kVA distribution transformer. The unit, manufactured by KONČAR – Distribution & Special Transformers, was recently installed in Zagreb for HEP ODS, the national Distribution System Operator.

This collaboration marks the inaugural deployment of a ‘Green Transformer’ in Croatia, representing a significant advancement for the country's distribution network. The project underscores a unified drive towards greater sustainability and a reduced environmental footprint for critical power infrastructure. For Nynas, this milestone highlights the practical application and reliability of its bio-based product portfolio.

NYTRO BIO 300X is engineered to provide a drop-in solution that combines high oxidation stability and superior cooling performance, allowing operators to enhance their ecological standards without compromising on operational reliability or transformer longevity. The successful installation stands as a testament to how industry partnerships are actively accelerating the transition to a more sustainable energy future.

Ivanka Radić, responsible for transformer oils at KONČAR - D&ST, said, “The thermal and dielectric tests on the transformer filled with NYTRO BIO 300X were successfully completed, and the unit is now fully operational. As expected, all test results were within the required limits, confirming the reliability and stability of this innovative fluid.”

Daniele Frustagli, General Manager Italy & the Balkans at Nynas, said, “We are very proud to have been entrusted with this project by KONČAR - D&ST and HEP ODS Zagreb, allowing us to showcase to them and the entire electrical industry the advantages of this fully renewable, bio-based hydrocarbon liquid. In addition to meeting and exceeding the IEC 60296 ed. 5 (2020) specification, the product is readily biodegradable, fully bio-based and has ultra-low viscosity.”

Vanja Burul, President of the Management Board at KONČAR - D&ST, said, “This project reflects our ongoing efforts to explore more sustainable insulating fluids. We see great potential for further use of NYTRO BIO 300X in future applications.”

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