Like its peers, the Sri Lankan rubber industry has been hard hit by the COVID 19. However, the pandemics will bring some opportunities to the sector, believes Ravi Dadlani, Chairman of the Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP), and MD of CEAT Kelani Holdings. “The demand for PPE is high and will be sustained in time to come until COVID 19 is no longer a pandemic. Especially gloves and other wearables made of rubber will be a good area for the Sri Lankan rubber industry to focus on,” says Dadlani an interview with Tyre Trends.

How do you see the impact of COVID 19 on Sri Lanka’s rubber industry?

Sri Lanka, like all exporting countries, have been largely impacted. The shutdown has caused a tremendous loss both in terms of production and the subsequent shut down of countries resulting in the cancellation of orders widely across the tyre industry. We are concerned that the impact fully on the industry is still to be realised. We will, once the supply chain and the related industries come back online, be able to quantify the extent of the impact. We are however positive that the Sri Lanka rubber industry is poised to benefit from the need arising from the COVID 19 impact. Especially the demand for PPE is high and will be sustained in time to come until COVID 19 is no longer a pandemic. Especially gloves and other wearables made of rubber will be a good area for the Sri Lankan rubber industry to focus on. Also, the government suspension of importing of tyres is poised to increase demand for domestic manufacturers of tyres at least in the short term, which will be a boost to the local rubber industry. Impact on the loss of exports and the timings of the opening of overseas markets would be critical at this point. 

The rubber industry has always been the country’s one of the main sectors and exporters. Do you think that the industry currently is being explored to its fullest potential?

There is a lot of potential for rubber in Sri Lanka. The need to increase the production of rubber through productivity improvements and the need to extend the rubber growing acreage is critical at this time. We have leading manufacturers of international repute and strong local manufacturers catering to export markets both in the tyre and gloves segments. 

The country also has the potential to enter new markets and customer segments with new products. There is more that needs to be done in terms of R&D and technological collaborations to enter high-value rubber-based product segments. With major global brands producing in Sri Lanka, we have a greater ability to increase trading activity and improve international sales as a regional hub for the industry.

What kind of support do you expect from the government and industry-related bodies for the long term?

Firstly, the rubber sector was the first to benefit from the priority given by the government initiative to commence operations. The sector benefited by the fast track approval to be classified as an essential sector. We expect the government to continue to have consistency when it comes to policy matters. We are also seeing a strong support base coming in terms of the Board of Investment and the Export Development Board for the rubber cluster. We need to fast track the planned policy-based approach of increasing rubber production in the country through the rubber master plan, with incentives if need be for plantations to spearhead this initiative. Also, research and development on rubber yield increase, all-weather rubber tapping techniques need to be introduced with governments thrust towards increasing rubber production.

There should also be incentives for exporters to invest in high-value rubber product manufacturing. We expect the government to educate the smallholders with international best practices to manage the rubber crop for better yield and output through RDD & RRI as key government institutions. The industry prefers to buy more local rubber, but there is a shortfall every year vs the demand. We also need to drive the public-private partnership research & development and must invest more in laboratory and testing facilities to provide certifications that are required for the export markets within Sri Lanka. The Government will also need to look at domestic supply chain inefficiencies which may hold back on the growth potential of the industry.

When we talk about tyres, how does the Sri Lankan tyre industry make its mark globally, especially in the solid tyre segment?

Absolutely it does. Sri Lanka is considered market leaders in certain categories of the solid tyre export segment. There are the numbers of global and local companies operating out of Sri Lanka holding a good foothold in the global solid tyre market. The global rubber industry is worth around USD 400 billion, out of which 65% is the tyre industry, given this, we have a market that we can increase our supply of both off road and on-road tyres, Sri Lanka has aggressively ventured into the global pneumatic agriculture, Off-road and industrial tyre segment which is estimated at USD 44b. We are confident that this position of strength will be maintained in the future, too in these segments. 

What are the challenges for tyre and rubber goods, especially for small and medium enterprises?

Key is the availability of rubber at consistent prices at the right quantities throughout the year. Currently, the industry is hampered with weather-related shortfalls in production coupled with plantations moving away from rubber and more profitable ventures depleting the total output. We consume 140,000 MT, and the local production is at 75,000 MT. Addressing these two areas will result in a stable supply of rubber for industries. It is very important that SMEs adopt technology and increase productivity and production to cater to the demand for rubber. 

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The Association of Natural Rubber Producing Countries (ANRPC) has published its Monthly Natural Rubber Statistical Report for September 2026, a month marked by broad-based price gains. Firm fundamentals, constrained supply and steady downstream demand combined with geopolitical and macroeconomic uncertainty to lift prices. Renewed Middle East conflict and disruptions to major shipping routes weighed on sentiment, while energy markets were especially affected by the closure of the Strait of Hormuz and attacks on transiting vessels, which raised risks to global energy supplies and strengthened the crude oil risk premium.

According to the report, physical prices for most major grades advanced. SMR-20 in Kuala Lumpur averaged USD 2.50/kg, up 7.96 percent month-on-month, and STR-20 in Bangkok rose 5.80 percent to USD 2.53/kg. RSS-3 in Bangkok slipped 0.30 percent to USD 2.79/kg, while RSS-4 in Kottayam eased 1.39 percent to USD 2.88/kg. Latex-in-bulk in Malaysia gained 3.60 percent to average USD 1.79/kg. Cautious tyre-manufacturer purchasing, limited to immediate needs after earlier increases, weighed on the RSS market. Latex drew support from tight supply, as persistent rainfall disrupted tapping and limited fresh and concentrated latex availability, while glove, healthcare and industrial demand held stable.

Trade flows diverged. China's imports grew 2.56 percent month-on-month, India's 11.36 percent and Malaysia's 17.85 percent, whereas Viet Nam's fell 3.40 percent. Exports rose 3.07 percent in Thailand, 7.30 percent in Malaysia and 1.91 percent in Cambodia, while Indonesia edged down 1.40 percent and Viet Nam recorded the steepest decline at 9.72 percent.

Global production is projected at 15.039 million tonnes in 2026, up 0.6 percent from 14.953 million tonnes in 2025, with September output estimated at 1.4 million tonnes. Uneven rainfall and elevated temperatures slowed supply recovery across Southeast Asia. Global demand is forecast to rise 0.4 percent to 15.356 million tonnes from 15.301 million tonnes, with the largest volume increases among ANRPC member countries. Prospects depend on vehicle sales, tyre production, shipping conditions and weather-related disruptions, while expanding electric-vehicle markets in China, India and Europe support modest growth.

The ringgit traded between RM4.04 and RM4.10 per US dollar, and the baht between THB 32.89 and 33.55. The SHFE January 2027 contract averaged CNY 19,070/tonne, up 5.3 percent month-on-month, and the SGX December 2026 contract averaged USD 2.41/kg, up 7.6 percent. Brent crude averaged USD 114.16 per barrel, a 25.3 percent monthly increase driven by geopolitical risks and shipping disruptions through the Strait of Hormuz.

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Birla Carbon, a leading global supplier of carbon materials, will exhibit at the International Rubber Conference (IRC) 2026, scheduled for 2–6 November in Nagoya, Japan, at Booth B. The company aims to address application-specific demands arising from the shift towards electric mobility, which places greater emphasis on tyre wear and energy efficiency while requiring automotive rubber components to balance durability with ride comfort.

A Very High Structure (VHS) lineup awaits manufacturers of passenger car, light truck, truck and bus tyres. These grades were engineered to meet electrification requirements and tightening standards such as Euro 7, delivering gains in tread wear, energy efficiency and tyre longevity.

Sustainability also features prominently. The company's Continua Sustainable Carbonaceous Materials (SCM) and Sustainable Carbon Blacks (SCB) lines, which contain higher levels of recycled or bio-based material, are intended to help tyre makers pursue circularity targets. Their dependable quality and ability to be supplied at scale in large volumes make them viable for production use, and the Continua range carries ISCC PLUS certification.

Mechanical rubber goods round out the display. Grades aimed at bushings enhance mixing and dispersion, contributing to fatigue life and component durability, while formulations for mounts pair low hysteresis and low stiffness with reinforcement so that durable parts can be produced without sacrificing ride comfort. Drop-in grades for extrusion reduce defects, scrap and screen-pack changes while raising throughput and extending service life. Simulation and technical expertise help customers assess materials, and global production plus Asian capacity growth support long-term supply.

Amit Kumar, President – Asia, Birla Carbon, said, “Asia’s tyre and rubber manufacturers are shaping the next phase of mobility, and their material requirements are becoming increasingly stringent. As the clear leader in our industry, Birla Carbon aims to grow alongside our customers, combining application-focused innovation with dependable local supply. We see performance and circularity as priorities that must progress together. By expanding our capabilities in Asia and strengthening customer partnerships, we aim to help manufacturers meet evolving market needs and build greater long-term competitiveness.”

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Zeon Corporation broke ground on a multi-product research and prototyping complex at the Kawasaki Innovation Frontier Port in Kawasaki City, Kanagawa Prefecture, on 16 October with a ceremony held beforehand to seek safety during construction. The company expects the complex to shorten the path from laboratory work to mass production for established and emerging businesses alike, making it central to its long-term growth strategy.

Set inside an existing building within the port's Research & Development Center area, the complex is slated to begin operating in January 2028. Its design aims to move products past the laboratory stage and into medium-scale sample output more quickly, clearing a bottleneck on the route to full-scale manufacturing.

Zeon's core production methods – polymerisation, hydrogenation, coagulation and drying – will be built into the complex, which is engineered to handle diverse manufacturing conditions and operating approaches. Beyond serving established and new businesses, the polymer design company envisions the site as a centre for technology development and a platform for rolling out new processes and operational, analytical, and measurement technologies within and beyond the company. It will eventually host development and prototyping work across a wide range of technologies, including contract prototypes commissioned by outside parties.

The Kawasaki Innovation Frontier Port is the umbrella name for the site combining the neighbouring Kawasaki Plant and Research & Development Center. The label underscores the location's role in breaking new ground by merging innovation, research and development and production and casts the Kawasaki waterfront as a port that propels innovation. Once a co-creative innovation facility begins operating in December 2026, the two sites will function as one continuous operation, turning out ever more sophisticated products and production methods and reinforcing their standing as a launchpad for technology.

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Vipal Rubber has launched the VT290, a tread designed for truck drive axles used on motorways and paved roads, targeting regional and long-distance transport operations in Europe.

The product is available in widths of 240mm, 250mm, 260mm, 270mm and 280mm. It is designed to provide traction and stability on dry and wet roads, as well as in demanding conditions involving snow.

Frederico Schmidt, General Manager of Vipal EMEA, said, “The launch of the VT290 reinforces Vipal’s ongoing commitment to offering technologically advanced solutions suited to the specific characteristics of European roads and climate.” “We want to further consolidate our presence in the region, delivering a high value-added product that combines innovation, operational efficiency and safety,” he added.

The VT290 carries the M+S marking and 3PMSF certification. Its design includes side sipes and grooves intended to help remove snow and mud from the tread, improving grip on slippery surfaces.

The tread pattern is also designed to distribute engine torque more evenly, helping to reduce uneven wear. Tie bars between the tread blocks add structural stability, supporting vehicle control during driving.

Fabrício Nedeff, Commercial Manager of Vipal EMEA, said, “With the VT290, weare responding directly to the real needs of fleet operators and truck drivers, combining performance, adherence and efficiency in different driving conditions. [RS2.1]In addition to expanding options for our customers, the product strengthens business opportunities for our partners in the region,”

Vipal said the launch would expand its offering for retreaders, distributors and fleet operators in the European market.

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