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.

TyreSafe Kicks Off Tyre Safety Month With Stark 'Stopping Distance' Warning

TyreSafe Kicks Off Tyre Safety Month With Stark 'Stopping Distance' Warning

TyreSafe, UK’s leading tyre safety charity, has launched its annual Tyre Safety Month by cautioning UK motorists that confidence in their vehicles’ stopping ability may be misplaced. Research indicates that although 83 percent of drivers feel fully in control of stopping distances, merely 6 percent know the additional distance required to halt in wet conditions at motorway speeds.

The study reveals that 94 percent of drivers underestimate how sharply stopping distances grow in rain, with many erring by substantial margins. This mismatch between perceived and actual risk spans every UK region, pointing to a nationwide problem involving driver awareness and vehicle preparedness.

In response, TyreSafe advises routine tyre checks, especially before seasonal shifts and heavier rainfall. Motorists are urged to remember the ACT principle – air pressure, condition and tread depth – and to act before they react.

Stuart Lovatt, Chairman, TyreSafe, said, “Many drivers and riders believe they are in control – but that confidence is often misplaced. Stopping distances in wet conditions can be far greater than expected, and tyres play a critical role in that equation. If your tyres are not properly maintained, your ability to stop safely is significantly reduced – no matter how confident you feel behind the wheel.”

Enviro Secures Second Extension For Ongoing company Reorganisation

Enviro Secures Second Extension For Ongoing company Reorganisation

Scandinavian Enviro Systems AB (publ) has secured a second extension of its company reorganisation, with the Gothenburg District Court approving a further three-month period lasting until 27 November 2026. The company has been under reorganisation since 27 February 2026, when the court initially granted the process. An earlier extension had already pushed the deadline to 27 August 2026 before this latest decision.

In its ruling, the District Court noted that Enviro has submitted a draft reconstruction plan and secured the necessary financing for it. The court also found that the company has taken other required measures, leading it to conclude that exceptional grounds exist to justify continuing the reorganisation beyond the ordinary timeframe.

Enviro now plans to ask the court to order plan negotiations and schedule a plan hearing as soon as possible. At that hearing, affected parties will be placed into groups and permitted to vote on whether to adopt the reorganisation plan. Details of the hearing date and participation instructions will be announced via press release and the company's website. Unless plan negotiations are ordered earlier, a reorganisation may last at most one year, or 15 months from the initial decision in such cases.

Fredrik Aaben, CEO, Enviro, said, "The District Court's decision gives us the opportunity to continue the intensive work of completing the company reorganisation. We have taken several important steps forward and are now working purposefully to establish a strong and long-term sustainable Scandinavian Enviro Systems. The strong interest in Enviro's technology persists, both with regard to licensing and other forms of collaboration. We are firmly committed to completing the reorganisation and building a strong industrial company based on our world-leading technology.”

Continental Expands Gen 5 Regional Haul Lineup With New Steer And Drive Tyres

Continental Expands Gen 5 Regional Haul Lineup With New Steer And Drive Tyres

Continental has launched the Conti HSR 5 EP steer tyre and Conti HDR 5 EP drive tyre, expanding its Generation 5 regional haul lineup. Engineered for regional fleet operations, both products target greater mileage, better fuel economy and longer casing life, aiming to lower fleets’ total cost of ownership.

The tyres suit routes marked by frequent stops and starts, urban and suburban travel and changing road surfaces. Their advanced tread patterns and latest compound technology seek a balance among wear performance, rolling resistance and retreadability while supporting year-round operation.

For the steer position, the Conti HSR 5 EP uses a new five-rib tread pattern and optimised footprint to improve wear and promote even treadwear. With Continental’s Generation 5 compound, it offers an estimated 22 percent mileage gain over its predecessor while keeping rolling resistance low for fuel efficiency.

The Conti HDR 5 EP drive tyre combines an open shoulder design, enhanced stone-trapping resistance and better cut-and-chip protection to preserve casing integrity and retread potential. It delivers an estimated 19 percent removal mileage improvement over its predecessor while maintaining fuel-saving rolling resistance. Both tyres are available from October 2026 in key regional haul sizes, with more sizes planned during 2027.

Shaun Uys, Vice President Marketing and Sales, Truck Tires US, said, "Regional fleets continue to face mounting pressure to improve operating efficiency while controlling costs. The new Conti HSR 5 EP and Conti HDR 5 EP were developed to help fleets go farther on every tyre investment through increased removal mileage, lower fuel consumption and enhanced casing life."

DUNLOP Group Strengthens Sustainability Governance With New Committees

DUNLOP Group Strengthens Sustainability Governance With New Committees

The DUNLOP Group is restructuring its sustainability management to more closely align business strategies with sustainability initiatives, aiming to achieve sustainable corporate value growth. As part of this effort, each business division will establish a Divisional Sustainability Promotion Committee under the umbrella of the existing Sustainability Promotion Committee, which oversees company-wide efforts. This change is intended to accelerate the integration of business strategies and sustainability measures.

The newly formed divisional committees will discuss and decide on sustainability policies designed to create business opportunities and drive growth within their respective divisions. They will also monitor progress towards division-specific targets under the Long-Term Sustainability Targets, known as ‘Driving Our Future Initiatives’, and share relevant information. Progress updates will be reported to the Sustainability Promotion Committee, strengthening company-wide monitoring.

Chart of sustainability management structure

In addition, a cross-divisional Sustainable Natural Rubber (SNR) Subcommittee will be launched to manage and reduce risks and create opportunities in the natural rubber supply chain. Natural rubber is a natural capital resource on which the Group’s business significantly depends and also has significant impacts. The subcommittee will address these issues from natural capital and human rights perspectives, based on the Sustainable Natural Rubber Policy.

The SNR Subcommittee will serve as a cross-functional body that concentrates and accelerates the Group’s various SNR activities. By aligning with biodiversity and human rights initiatives and taking a mid- to long-term approach, it will pursue sustainable natural rubber through efforts such as supporting natural rubber farmers and collaborating with external partners.