The downward revision in the world supply outlook for 2020 is largely due to the scaling down of the outlook for Thailand and India, according to ANRPC. The outlook on the production of NR in Thailand has been scaled down by 332,000 tonnes to 4.478 million tonnes. The country’s revised outlook for 2020 represents a 7.7% decline from the previous year as against a 0.9% anticipated fall reported a month ago.

The harvesting and primary processing of rubber in Thailand are severely affected by acute shortage of labourers. The migrant labourers from neighbouring countries and those from other provinces within the country find it difficult to reach back and resume the various farm management activities including tapping and primary processing. Aggravating the situation, tropical storm ‘Noul’ damaged rubber plantations in several provinces of Thailand in the last week of September besides causing heavy rains, flash floods, and water run-offs.

In August, northern Thailand was hit by the tropical storm ‘Sinlaku’ causing flash floods in 18 northern provinces of the country. The loss in output arising from previous year’s incidence of a new fungal leaf disease is already factored in. Abnormal leaf fall resulting from fungal diseases usually impacts on the yield performance of the affected for two succeeding years.

In India, the production anticipated in 2020 has been scaled down by 42,000 tonnes to 668,000 tonnes, ANRPC study said. The revised outlook represents a 4.8% decline from the previous year as against a 1.1% anticipated increase reported a month ago. The country’s NR production sector is impacted by a burst in the number daily new cases of Covid-19 infections in the State of Kerala since the beginning of September and the abnormal leaf fall caused by the outbreak of Phytophthora leaf disease during July and August. It is reported that the incidence of abnormal leaf fall during this year is less severe compared to the previous year.

Demand fall

There has also been a fall in world consumption of NR by 11.7% y/y to 8.151 million tonnes during the first eight months of 2020 (Jan-Aug), as per preliminary estimates. Based on the revised estimates and forecasts, the world consumption outlook for the full year 2020 is marginally scaled up by 67,000 tonnes to 12.611 million tonnes by representing an 8.4% fall from the previous year. The outlook for 2020 as reported a month ago was 12.544 million tonnes by representing an 8.9% fall from the previous year.

China has marginally revised up its consumption outlook for 2020 in view of an observed earlier-than expected economic recovery and acceleration in growth. A survey conducted by Nikkei revealed that the growth has been more pronounced in the manufacturing sector. The Manufacturing Purchasing Managers’ Index (PMI) improved to 51.5 in September from 51.0 recorded in August and 51.3 anticipated for September, according to a survey conducted by the country’s National Bureau of Statistics and the China Federation of Logistics and Purchasing. The country’s automobile sector has made a major turnaround. The domestic retail sales of passenger vehicles, including minivans, SUVs and multipurpose vehicles, increased 7.4% y/y in September 2020, the third straight monthly gain. The domestic sales of passenger vehicles had increased 6.0% y/y in August 2020.

As per the revised outlook, China is anticipated to consume 5.055 million tonnes of NR during 2020, down 8.9% from the previous year. The country’s consumption outlook for 2020, as reported a month ago was 5.043 million tonnes, down 9.1% from the previous year.

India has scaled-up its consumption outlook for 2020 to 923,000 tonnes from 900,000 tonnes reported earlier in the year. Auto sales in India have made a U-turn. The domestic sales of passenger car increased 31.3% y/y in September 2020, the highest growth over the past 27 months. The trend reversal in passenger car is driven by preference for personal mobility during the pandemic, gradual opening up of markets, easing of supply-chains, labour availability, and excitement of new vehicle launches. The domestic sales of two-wheeler grew 12% y/y in September 2020, the highest growth over the past 21 months. Sales of tractor increased 16% y/y during the month, the highest growth over many years in the past.  The domestic sales of LVC (Light Commercial Vehicles) and M&HCV (Medium and Heavy Commercial Vehicles) declined by 3.0% each during the month, after double digit declines till August 2020.

Looking ahead, according to ANRPC, the world demand for NR will remain constrained by the uncertainties clouding the global economic recovery, acceleration in the number of new coronavirus cases, reintroduction of control measures and partial lockdowns across countries and a likely long delay in the mass availability of the vaccine. On the positive side, there are increased hopes of further fiscal aid in the US to keep its economy on track. The White House has reportedly raised its stimulus offer from the earlier proposed $1.0 trillion to $1.5 trillion, and further to $1.8 trillion, though that is still short of $2.2 trillion proposed by the Democrats.

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The Yokohama Rubber Co., Ltd. has been named a ‘Supplier Engagement Leader’, the top ranking in the 2025 Supplier Engagement Assessment by CDP, a global environmental nonprofit focused on a sustainable economy. This marks the second consecutive year the company has received the highest rating.

The CDP assessment examines how businesses effectively collaborate with suppliers on climate change issues, based on five criteria from its climate questionnaire: governance and strategy, emissions targets, Scope 3 emissions, risk management and supplier cooperation. Yokohama Rubber aims to achieve net zero CO₂ emissions from its own operations by 2050 and has disclosed Scope 3 emissions since 2013.

To address supply chain climate impact, the company created the Yokohama Green Procurement Guidelines with suppliers to promote eco-friendly raw materials. It also holds annual CSR briefings for suppliers on carbon neutrality. Under its ‘Caring for the Future’ sustainability slogan, Yokohama Rubber continues to generate shared value by tackling social issues through business activities.

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HF Group’s Freudenburg site in Germany has once again been awarded the EcoVadis Gold Medal, a distinction granted only to the top five percent of companies assessed by EcoVadis in the 12 months prior to the medal issue date.

The recognition reflects the quality of the company’s sustainability management system and demonstrates a firm commitment to promoting transparency throughout the value chain, acknowledging its continued dedication to responsible business practices and continuous improvement.

Simultaneously, the group is now preparing for a group-wide EcoVadis assessment, aiming to achieve its first consolidated group result by the close of 2026. This initiative represents another important milestone in strengthening HF Group’s sustainability journey on a global level, reinforcing its long-term environmental and social governance objectives across all operations.

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BKT Tyres, the tyre mobility brand of Balkrishna Industries Ltd. (BKT), has introduced a 24x7 journey assistance programme called BKT YOU FORWARD for two-wheeler riders. The initiative marks the company’s shift from a pure tyre manufacturer to a comprehensive mobility partner, offering support that extends well beyond the point of sale and aligns with its Elevate Your Drive philosophy.

Available across India, the programme provides round-the-clock assistance through a dedicated helpline for unexpected incidents like punctures, breakdowns or accidents. Services include towing, repairs, ambulance access, cab arrangements and legal aid, all aimed at reducing rider anxiety and ensuring uninterrupted mobility.

A digital-first campaign film starring veteran actor Rakesh Bedi brings the initiative to life through everyday riding scenarios, showing how reliable support turns stressful roadside moments into reassuring experiences.

BKT YOU FORWARD offers three structured plans with two-year validity: the Basic Plan at INR 99, the Signature Plan at INR 149 and the Elite Plan at INR 199. Partner agencies Crossroads and Bi WW support the programme, which relies on a robust service infrastructure, real-time monitoring and defined processes to maintain consistent customer experiences and long-term engagement.

Mahesh Koppad, Chief Marketing Officer, BKT Tyres, said, “Indian riders face diverse challenges every day, and access to timely, reliable support can redefine their journey experience. At BKT Tyres, our philosophy of Elevate Your Drive is not limited to selling tyres; it’s a long-term commitment to rider confidence and mobility. BKT YOU FORWARD, as the name suggests, is designed with consumer-first principle and embodies this promise by offering a structured, 24x7 assistance programme that covers nearly every scenario a rider may encounter. This initiative is not just about solving problems, it’s about building trust, continuity and assurance into every journey. By combining strong service infrastructure, real-time monitoring and defined escalation processes, we are setting a new benchmark in customer engagement. Our vision is to ensure that riders don’t just move forward but move forward with confidence.”

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Xingda, a prominent producer of rubber reinforcement materials, has joined forces with tyre manufacturer Pirelli and low-carbon steel specialist Nanjing Iron & Steel (NISCO) to obtain ISCC PLUS certification across the entire scrap steel recycling chain. The jointly awarded certification spans every stage from raw material sourcing and steel cord production to finished tyre manufacturing.

The pilot project, championed by Pirelli and taken up by both Xingda and NISCO, seeks to add recycled steel to the ISCC PLUS approved materials list. This achievement represents continued progress in certifying the complete tyre supply chain under the ISCC PLUS framework for recycled steel usage.

Through this certification, a fully traceable circular model has been validated. Scrap steel carrying ISCC PLUS certification is turned into high-grade wire rod at NISCO, then converted into steel cord by Xingda and finally incorporated into tyres produced by Pirelli. The three value chain leaders are demonstrating collective action under a single certification system to speed up the circular economy transition. The partnership has helped define technical standards and sustainability protocols, enabling transparent communication about raw material origins.

Xingda has confirmed that recycled steel can be used in steel cord and bead wire applications at proportions between 40 and 100 percent. The company has established targets of reaching 40 percent recycled content by 2030 and full 100 percent by 2050. Meanwhile, Pirelli, as an early adopter of ISCC PLUS certified recycled steel in tyre production, aims to launch a tyre composed of over 80 percent bio based and recycled materials by 2030 while achieving 40 percent in total raw material use. NISCO supplies green special steel to the automotive sector using advanced electric arc furnace technology, with plans to peak carbon emissions by 2030 and reach carbon neutrality by 2050.

The ISCC PLUS certification awarded to this three-party collaboration ensures that the recycled steel meets strict sustainability and traceability standards. As a globally recognised system for tracking recycled and renewable materials across complex supply chains, ISCC PLUS now supports a replicable model for the worldwide tyre industry, allowing the full journey from scrap steel to finished tyres to be verified in response to rising market demand for transparent, circular supply chains.

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