Uncertainties impact world rubber supply, demand

Uncertainties impact world rubber supply, demand

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.

Maxxis Wins Honda Excellence In Quality And Delivery Award For 2025

Maxxis Wins Honda Excellence In Quality And Delivery Award For 2025

Maxxis’ automotive division has earned the Excellence in Quality and Delivery Award from Honda for 2025. This recognition was presented during a ceremony held on 22 April in Columbus, Ohio, where Honda honoured 37 suppliers out of a total pool of more than 700 mass production parts providers across North America.

Maxxis supplies spare tyres for several Honda and Acura models, including the Honda Accord and Acura Integra assembled at Honda’s Maryville plant, as well as the Honda Civic Si produced at the Honda of Canada facility in Alliston, Ontario. The award highlights Maxxis’ consistent performance in meeting stringent quality standards and delivery schedules, reinforcing the division’s role as a trusted partner within Honda’s North American production network.

Andy Lee, Maxxis International – USA President, said, “On behalf of everyone at Maxxis, I want to thank Honda for this tremendous honour. We’re very pleased to have met their high standards for excellence. All of us at Maxxis are very grateful for this recognition and are equally grateful for our partnership with Honda. I also want to thank our automotive OE division for their hard work and dedication, which made this award possible.”

Paul Dentinger, Senior Vice President of the Purchasing & Supply Chain Center at Honda Development & Manufacturing of America, LLC, said, “As we focus our automobile business on maximising hybrid and gas-powered models, Honda continues to invest in our North American supplier network, collaborating with our supplier partners to turn innovative technology into value for our customers. In this rapidly changing business environment, we must work closely with our suppliers to find new ways to improve cost competitiveness, speed up development time and enhance product appeal that ensures Honda is the brand of choice for customers. Congratulations to all of our award-winning service parts and mass production suppliers who earned this distinguished honour.”

Wacker Finalises Social Plan For 1,600 German Job Cuts Under PACE Programme

Wacker Finalises Social Plan For 1,600 German Job Cuts Under PACE Programme

German chemical group Wacker is moving forward aggressively with its PACE programme, a global initiative to cut costs and improve efficiency that was launched in October 2025. The overarching goal is to permanently secure the company’s competitive standing by slashing annual expenses by more than EUR 300 million, a target that has already been announced alongside plans for worldwide workforce reductions.

A key development in Germany involves a new agreement between management and employee representatives to handle the planned loss of roughly 1,600 jobs through socially responsible means. Instead of forced dismissals, the company will rely on voluntary measures such as attractive phased early retirement and severance packages. To create the financial breathing room for this approach, all German employees will accept a temporary solidarity contribution until 2028, taking the form of a four percent cut to both their hours and pay. All structural changes under the PACE umbrella are expected to be finalised by the end of 2027.

The distribution of job reductions will see the heaviest impact at the Burghausen site, Wacker’s largest globally, where 1,300 positions will be eliminated. The Nünchritz facility will lose 200 jobs, the Munich headquarters will reduce its headcount by 60 and a collective 50 positions will be cut from other Wacker locations across Germany. The implementation plan, which includes consolidating production facilities, adjusting shift system flexibility and shifting roles to international service hubs, has been fully agreed upon by both employer and employee representatives.

Christian Hartel, CEO, WACKER, said, "With the agreement we have now concluded, we have reached an important milestone in driving forward the necessary transformation in Germany and strengthening our competitiveness. We have already implemented numerous measures at our international sites that make us more flexible, more efficient and faster. Now, the implementation phase will start in Germany as well.”

Angela Wörl, Personnel Director, WACKER, said, "Together with the employee representatives, we have come up with good solutions to implement the necessary structural measures in Germany not only quickly, but, above all, in a socially responsible manner. This will strengthen the position of our German sites in the face of international competition and lay the foundation for future profitable growth."

Bridgestone Ceases Manufacturing Operations At Hsinchu Plant

Bridgestone Ceases Manufacturing Operations At Hsinchu Plant

Bridgestone Taiwan Co., Ltd. (Bridgestone) has completed a major business transformation, having ceased manufacturing operations at its Hsinchu plant on 11 May 2026 and concluded all related production activities. The decision was based on adjustments to its global operational strategy and long-term market development considerations. Under this plan, Bridgestone continues to deepen its presence in the Taiwan market, having transitioned into a sales and service-focused business model.

The company, which has operated in Taiwan since 1982, stated that the Hsinchu facility has played a key role in supporting the Bridgestone Group’s operations and product supply over the years, building a solid foundation for the brand locally. Bridgestone pledged to follow local regulations in providing affected employees with comprehensive support, including career transition services and other assistance measures.

Going forward, Bridgestone will strengthen its sales and service capabilities by enhancing channel development, refining sales systems and deepening collaboration with local distributors. The company also plans to broaden its product portfolio to meet diverse market demands and improve overall service levels. Guided by its mission of serving society with superior quality, Bridgestone aims to leverage its global manufacturing network to ensure stable supply and greater product competitiveness in Taiwan.

Rubber Board To Offer Drone Spraying Guidance For Leaf Diseases Via Helpline

Rubber Board To Offer Drone Spraying Guidance For Leaf Diseases Via Helpline

The Rubber Board of India has introduced a new initiative to assist farmers seeking information on the use of agricultural drones for fungicide application on rubber plantations. The advisory specifically targets the management of leaf diseases that become prevalent during the rainy season, including Abnormal Leaf Fall and Colletotrichum Leaf Spot. To facilitate this, the Rubber Board has made its call centre available for farmers to raise their queries.

Principal Scientist Dr Shaji Philip from the Rubber Research Institute of India will be the designated expert responding to these inquiries. He will be available for a dedicated three-hour session on the morning of 15 May 2026 from 10 am to 1 pm. Farmers are encouraged to reach out during this period to gain technical clarity on drone-based spraying methods.

The call centre can be contacted directly at the phone number 0481-2576622. This step is aimed at modernising disease control practices in rubber cultivation and reducing the manual labour and risks associated with traditional spraying during wet weather conditions.