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.

wdk: Industrial Resilience Hinges On Rubber Industry Inclusion

wdk: Industrial Resilience Hinges On Rubber Industry Inclusion

The German Rubber Industry Association (wdk) has urged policymakers in Berlin and Brussels to give the rubber sector a more prominent role in industrial, security and raw materials strategy. Speaking at the association's autumn conference in Frankfurt am Main before roughly 200 company representatives, wdk President Michael Klein argued that rubber serves not only mobility but also security and defence.

Elastomer products such as seals, hoses, membranes and vibration dampers are essential to the operation of modern industrial plants as well as military vehicles, aircraft and logistics infrastructure. Though frequently overlooked, their failure can cripple entire technical systems. Klein therefore called for the rubber industry to be included in security and defence planning at an early stage, particularly regarding the safeguarding of production capacity, raw material supplies and technological know-how. He described industrial resilience as an integral part of national resilience, warning that capabilities not maintained in peacetime cannot be restored quickly during a crisis.

The wdk identifies raw material supply as a pressing concern, contending that Germany and Europe need an independent rubber raw materials strategy covering both civilian and military crisis preparedness. Such a strategy would entail long-term, diversified supplier relationships, strategic reserves of critical raw materials and intermediate goods and the preservation of European processing and blending capacity.

Klein also renewed calls for a sustained improvement in industrial location conditions, citing competitive energy prices, faster permitting, meaningful reductions in bureaucracy and dependable investment frameworks as prerequisites for retaining industrial value creation in Germany. He stressed that economic growth stems from trust rather than regulation.

Monza WEC Finale Marks Farewell To Current Goodyear Racing Eagle Spec

Monza WEC Finale Marks Farewell To Current Goodyear Racing Eagle Spec

The Goodyear Tire & Rubber Company closes its FIA World Endurance Championship campaign this weekend as the 6 Hours of Monza returns, marking the final race for the current Goodyear Racing Eagle LMGT3 tyre specification. Although the Milan-area circuit has appeared on the WEC calendar before, this is its debut in the LMGT3 era, and the November scheduling should deliver markedly cooler conditions than the series encountered during its July 2023 visit to the circuit known as ‘The Temple of Speed’.

Designed for swift warmup, the Goodyear Racing Eagle Medium compound should give professional and amateur drivers alike the assurance to push hard immediately upon leaving the pit lane despite lower temperatures. The layout's long straights and tight chicanes echo Le Mans, and Goodyear engineers have leaned on prior experience at Spa-Francorchamps and Silverstone to ready for the colder weather. Every LMGT3 team will have a designated Goodyear track support engineer on hand to advise on setup and race strategy across the weekend.

Single-stint tyre strategies are expected to be popular, mirroring last month's 6 Hours of Barcelona. If rain falls, the wide transition window of both the slick and wet tyres could open up intriguing strategic options on a drying surface. Beyond closing the third LMGT3 season in WEC, the weekend marks the last appearance of the current Racing Eagle slick and wet tyres; from next season, LMGT3 cars in WEC and the European Le Mans Series will race on new-specification tyres containing 66 percent sustainable material.

Across the Atlantic, Goodyear Racing Eagles will also be in action this weekend in the NASCAR Championship Races at Homestead-Miami Speedway. In addition, the NHRA Mission Foods Drag Racing Series wraps up next weekend at Pomona Dragstrip.

Stephen Bickley, Goodyear Endurance Program Manager, said, “Monza presents an interesting challenge to round out a competitive WEC season, particularly with the cooler conditions we expect at this time of year. Getting tyres up to temperature quickly will be important, but the fast warmup characteristics of our Goodyear Racing Eagle Medium should give drivers the confidence they need from the start of each stint. This weekend is a significant milestone for Goodyear as we conclude three seasons with our current LMGT3 tyre specification. After last month’s 6 Hours of Barcelona, teams have started testing our new tyres, which we’re looking forward to seeing in racing action next year.”

Kuraray America Honours Employees As Bayport Turns 10

Kuraray America Honours Employees As Bayport Turns 10

Kuraray America, Inc. is commemorating 10 years of production at its Bayport facility, a milestone shaped by a workforce assembled from widely differing backgrounds. Since operations commenced in 2016, the site has drawn staff from the oil and gas sector, from other Kuraray America locations and from Kuraray Group operations in Singapore and Japan as expatriates. That blend of experience and perspective formed the groundwork on which the site was built.

Across its first decade, Bayport has delivered enduring value to the company and its customers, powered by employees who gave their time, passed on expertise, assisted colleagues and helped steer the site towards success. The occasion gains further meaning from its proximity to the Kuraray Group's 100th anniversary in June 2026.

Kuraray America thanked the employees and customers whose backing sustained Bayport through its opening decade and will remain crucial going forward. Jacqueline Unzueta received special mention for leading the anniversary event's coordination, while Hans Vandommele, Charles Neal, Nelson Rodriguez, Takehiro Kanno and Frank Taylor were also recognised in connection with the celebration. The company affirmed its commitment to carrying forward the teamwork, expertise and shared purpose that have characterised Bayport's first 10 years.

Reflecting on the site's growth and his own professional journey, Raymond Myska, Plant Manager at Kuraray America's Bayport site, said, "My own journey at Bayport began in 2017. I joined as Maintenance Manager, and in 2025, I had the privilege of stepping into the role of Plant Manager. Although I wasn't here when the doors first opened, I've had the opportunity to grow alongside this team, witness how far we've come and contribute to the success stories we're celebrating today."

TyreSafe And Dudley Trading Standards Expose Widespread Part-Worn Tyre Failures

TyreSafe And Dudley Trading Standards Expose Widespread Part-Worn Tyre Failures

TyreSafe, UK’s leading tyre safety charity, has joined forces with Dudley Council Trading Standards for an enforcement operation targeting part-worn tyre retailers, with support from West Midlands Police. Unannounced audits followed earlier advisory visits during which traders had already received guidance on statutory obligations. Nonetheless, every business inspected failed to meet basic safety and legal standards, producing a 100 percent non-compliance rate.

The inspections exposed a range of serious breaches, including dangerous illegal string repairs, punctures in sidewall and shoulder areas that cannot be repaired, absent or temporary ‘PART-WORN’ markings, improper pressure testing, aged and hardened rubber and tread depth below the legal minimum. Under the Motor Vehicle Tyres (Safety) Regulations 1994, such tyres must be thoroughly inflation-tested before sale, have at least 2.0 mm of tread, be structurally sound and carry a permanent uppercase ‘PART-WORN’ stamp.

Each trader subsequently received an individual Trader Notice summarising visit findings, identifying specific concerns, acknowledging compliance where found and offering practical guidance on meeting legal duties. TyreSafe and Dudley Trading Standards now intend to use the case study to urge other UK local authorities to prioritise joint enforcement against part-worn tyre retailers and remove illegal stock from the consumer market.

Laura Reuben, Public Protection Manager, Dudley Council, said, “The findings of this operation are deeply concerning. Consumers purchasing part-worn tyres often assume they are buying a safe, legal alternative to pass an MOT or save money, but our joint checks show a widespread disregard for basic safety laws. Educational visits alone have proven insufficient, and we will not hesitate to use our formal enforcement powers to protect motorists from dangerous stock.”

Stuart Lovatt, Chairman, TyreSafe, said, “This operation with Dudley Trading Standards exposes a stark reality: 100 percent non-compliance among the retailers audited, even after receiving compliance advice. Dangerous tyres on the road pose an immediate threat to driver and pedestrian safety. We urge local authorities across the UK to follow Dudley’s lead and integrate targeted, unannounced part-worn checks into their enforcement schedules.”