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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Bridgestone Retail Operations (BSRO), a subsidiary of Bridgestone Americas, has concluded its fourth annual ‘Download the App, Plant a Tree’ campaign, resulting in nearly 59,000 new trees being planted across United States. The initiative, which ran from Earth Day on 22 April through the end of Bridgestone’s Sustainable Business Week on 12 May, encouraged customers of Firestone Complete Auto Care and Tires Plus to transition away from paper-based processes. In partnership with The Nature Conservancy, the company committed to planting one tree seedling for every new download of its mobile applications.

Since the programme’s inception in 2023, the cumulative effort has contributed over 244,000 tree seedlings to a conservation project spanning 3,600 acres. For the second consecutive year, Bridgestone has collaborated with The Nature Conservancy to focus reforestation on flood-prone areas within the Mississippi Delta region, protecting vulnerable farmland. This work builds upon a significant prior contribution, as the company donated over 5,700 acres of Tennessee land to the organisation in 2018, the largest land donation in that chapter’s history.

The mobile applications function as digital glove boxes, enabling customers to schedule appointments, access vehicle histories and review promotional offers. By incentivising digital adoption, BSRO seeks to curtail paper waste across its 2,200 retail locations. Beyond reducing paper consumption, the company’s sustainability strategy incorporates electric vehicle maintenance and charging services, alongside recycling nearly all products and byproducts used in stores.

This reforestation effort supports the Bridgestone E8 Commitment, a framework of eight corporate values guiding sustainability objectives. The campaign exemplifies the company’s dedication to Energy, Ecology and Efficiency, demonstrating how customer engagement drives environmental outcomes. Through these actions, BSRO integrates ecological responsibility into its retail operations and long-term business model.

Marko Ibrahim, President, BSRO, said, “We are proud to see this campaign continue to grow and support Bridgestone’s long-term sustainability goals. By helping expand green space in communities across the country, our stores are demonstrating what it means to live out our Promise to Care.”

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NEXEN TIRE has inaugurated a fully automated logistics centre at its European manufacturing facility in Žatec, Czech Republic. The strategic project significantly boosts the plant’s storage capacity by roughly 57 percent, elevating it from 530,000 to 830,000 tyres.

Spanning 7,104 square metres and rising 51 metres high, the new warehouse employs cutting-edge automation, including RFID-based product tracking and fully automated inbound and outbound systems. These technologies streamline the entire production-to-shipment process, enhancing both operational efficiency and inventory accuracy. Consequently, the European subsidiary gains greater agility to address seasonal demand shifts, ensuring faster and more reliable deliveries that bolster regional customer satisfaction.

Since commencing European production in 2019, NEXEN TIRE has persistently expanded its local presence. The warehouse project, launched in October 2024 following the plant’s second-phase completion, directly supports rising output and underscores the company’s commitment to strengthening supply chain resilience and manufacturing capabilities across Europe.

John Bosco (Hyeon Suk) Kim, CEO, NEXEN TIRE, said, “This warehouse expansion does more than just increase storage capacity. It is a strategic investment that will strengthen our integrated production and logistics capabilities. By continuously enhancing the operational capabilities of our European plant, we will improve the trust of customers and further accelerate our growth in the European market.”

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Tegeta Green Planet, a pioneering Georgian organisation authorised by the Ministry of Environmental Protection and Agriculture under the Extended Producer Responsibility (EPR) system, partnered with Shine Energy for an educational visit to GLC School (Georgian Learning Center School). The organisation specialises in the circular economy collection, transportation and recycling of used tyres, waste oils and batteries.

Students from grades VI to IX engaged in dynamic discussions, practical exercises and interactive tasks designed to impart crucial knowledge on waste management and resource conservation. The session illuminated the mechanics of the EPR system and underscored the vital role of individual citizens in environmental stewardship. To commemorate their enthusiastic participation, the students received certificates and symbolic gifts.

This initiative is part of a broader strategy by both companies to cultivate environmental consciousness among youth. By utilising practical examples and interactive learning methods, including presentations and games, the project aims to instil sustainable behaviours and a deep understanding of circular economy principles in the next generation.

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The Alliance for the Future of Tires (AZuR) has expanded its European network by integrating REGOM, a French innovator specialising in automated sorting and identification systems for end-of-life tyres. This partnership strengthens the collaborative push towards a sustainable tyre circular economy, leveraging REGOM’s technological expertise to enhance digitalisation and transparency across the industry.

Proper assessment and classification of used tyres is the foundational step in establishing a functional circular system. Determining whether a tyre is fit for reuse, retreading, recycling or alternative recovery processes is essential to maximising the lifespan of valuable materials. REGOM’s solutions directly address this critical juncture by providing precise, data-driven evaluations.

The company employs advanced artificial intelligence, image processing and real-time data analysis to capture key attributes like tyre dimensions, manufacturer details and tread depth. This technology enables accurate sorting, directing each tyre towards its most suitable end-of-life pathway, thereby improving the efficiency of material flows and boosting recycling rates. Such automated objectivity is a significant asset for waste managers, recyclers and retreaders.

Looking forward, REGOM is actively engaged in pioneering initiatives like the Digital Product Passport and RFID-based identification. These tools are vital for ensuring full lifecycle traceability, from production through multiple use cycles. By enabling comprehensive data collection and process optimization, these technologies promise to drive greater resource efficiency and solidify the digital backbone of the future circular economy.

Christina Guth, AZuR network coordinator, said, “Digital technologies will play a key role in the tyre circular economy in the future. They help to keep tyres in circulation longer, strengthen high-quality recycling pathways and use valuable raw materials more efficiently.”

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