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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HS HYOSUNG ADVANCED MATERIALS made a significant impact at InLEX KOREA 2026, the international defence exhibition hosted from 9 to 11 June at the Daejeon Convention Center. The company placed its advanced material technologies at the forefront, positioning them as future cornerstones of the defence industry.

The exhibition, organised by the Ministry of National Defense and the Army Headquarters, gathered military and civilian stakeholders to chart the sector’s trajectory. HS HYOSUNG ADVANCED MATERIALS used the platform to unveil defence applications of its proprietary carbon fibre, aramid and lyocell while actively building customer networks and hunting for global defence contracts.

Three specialised units collaborated on the ground. The Carbon Materials PU featured aerospace-grade propulsion tanks for drones and satellites alongside chopped fibre and 3K carbon fabrics. Concurrently, the Aramid PU presented ballistic helmets and body armour woven from heat-resistant, high-strength aramid yarns aimed at maximising soldier safety.

In a separate showcase, the Tire Reinforcement Materials PU introduced eco-friendly lyocell yarn and carbonised lyocell fabrics. The Aramid PU’s protective gear and the Carbon Materials PU’s lightweight composites collectively demonstrated how HS HYOSUNG ADVANCED MATERIALS is broadening the use of advanced composites in military applications.

Lim Jin Dal, Chief Executive Officer of HS HYOSUNG ADVANCED MATERIALS, said, “Through this exhibition, we hope to demonstrate how our advanced high-performance materials technologies can be applied to Korea’s defence industry. Building on our continuous R&D efforts and commitment to localising advanced materials, we will contribute to establishing a stable supply chain and continue growing together with the defence industry.”

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ARLANXEO and Covestro have deepened their partnership to enhance sustainability in synthetic rubber manufacturing. ARLANXEO has incorporated ISCC PLUS-certified chlorine from Covestro into its chloroprene rubber production, resulting in a marked decrease in the product environmental footprint of the Baypren portfolio. Covestro produces this certified chlorine using renewable electricity, thereby supporting lower greenhouse gas emissions across the supply chain.

Beginning in January 2026, ARLANXEO’s entire chloroprene rubber output relies exclusively on ISCC PLUS-certified chlorine, representing a major advancement in the company’s long-term sustainability strategy. Depending on the product grade, this shift delivers an average 20 percent reduction in global warming potential compared to 2025 levels. As a critical raw material provider, Covestro has enabled this transition by ensuring a steady supply of the certified chlorine.

The adoption of ISCC PLUS-certified feedstocks strengthens ARLANXEO’s standing as a premier supplier of sustainable elastomer solutions for industries with aggressive climate goals, including automotive, construction, industrial manufacturing and adhesives. Additionally, ARLANXEO now offers Baypren Eco grades that combine certified chlorine with ISCC PLUS-certified butadiene.

These eco grades allow for even deeper environmental impact reductions while maintaining full performance, helping customers meet their own sustainability targets without compromising product quality.

Niels van der Aar, Head of Sustainability at ARLANXEO, said, “Integrating ISCC PLUS-certified materials into our production is a key step in reducing the environmental footprint of our CR products. It underlines our commitment to supporting customers with more sustainable material solutions while advancing transparency along the value chain by supplying corresponding product environmental footprint data for ARLANXEO’s entire CR product portfolio.”

Moritz Winterstein, Head of Trading Cluster Basic Chemicals EMEA at Covestro, said, “At Covestro, we support our customers in reducing emissions along the value chain by supplying more sustainable basic chemical raw materials from our multiple ISCC PLUS-certified production sites. Our collaboration with ARLANXEO demonstrates how certified raw materials and renewable electricity can contribute to lowering the product environmental footprint of downstream applications and support customers in achieving their sustainability targets.”

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The Association of Natural Rubber Producing Countries (ANRPC) released its April 2026 report, highlighting rising prices despite lower production. Output fell 2.59 percent year-on-year due to the seasonal wintering period, dry weather across South and Southeast Asia and El Niño concerns. Brent crude surged to USD 117.29 per barrel, up 13.72 percent from March, driven by Middle East disruptions, which boosted centrifuged latex valuations.

Physical prices rose across all major grades. SMR-20 in Kuala Lumpur increased 4.61 percent to USD 2.13 per kilogramme, while STR-20 in Bangkok climbed 3.53 percent to USD 2.27. RSS-3 in Bangkok jumped 8.10 percent to USD 2.77, and RSS-4 in Kottayam rose 6.53 percent to USD 2.50. Centrifuged latex in Kuala Lumpur gained 12.47 percent to USD 1.93 per kilogramme. Futures markets remained firm, with the Shanghai Futures Exchange September 2026 contract averaging CNY 17,009 per tonne.

For 2026, global production is projected at 15.322 million tonnes, up 2.2 percent, with upward revisions for China and Malaysia. Consumption is forecast to grow 1.3 percent to 15.550 million tonnes, driven by electric vehicle production and recovery in rubber goods. In April alone, estimated output was 772,000 tonnes, while consumption reached 1,235,000 tonnes, a 2.3 percent annual rise.

Trade patterns diverged sharply. China’s imports fell 13.35 percent to 538,200 tonnes due to high inventories, while India’s imports surged 38.79 percent on strong manufacturing demand. Thailand’s exports contracted 4.28 percent to 378,000 tonnes, but Cambodia’s exports soared 106.49 percent. The Malaysian ringgit strengthened to near 3.96 against the US dollar, while the Thai baht stabilised around 3.07 after volatile trading.

The macroeconomic environment remained tense, with US-China trade friction, the Middle East conflict and the US Federal Reserve holding interest rates at 3.50 to 3.75 percent. The near-term outlook for natural rubber is cautiously positive but subject to heightened volatility.

The ANRPC reaffirmed its commitment to objective analysis for the sustainable development of the natural rubber sector. Member governments and stakeholders were encouraged to use the report’s findings for evidence-based policies.

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Indorama Advanced Oxides, a subsidiary of Indorama Corporation, has successfully restarted production at Huelva facility in Spain, achieving its first tonne of Titanium Dioxide (TiO₂) output. The plant, which has an annual capacity of 80,000 tonnes, represents the company’s strategic entry into the global titanium dioxide market. This milestone follows Indorama’s recent completion of the site acquisition from Venator P&A Spain.

The restart marks a crucial step in returning the facility to full operation after the acquisition, ensuring continued supply of the essential white pigment to customers across Europe and global markets. The Huelva team demonstrated strong collaboration and safe execution in resuming activities. This white pigment remains critical for the European paints, coatings and plastics industries.

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