Autos demand fall and global competition weigh on rubber markets

Demand for synthetic rubber successful Western markets is falling arsenic a effect of the slowdown successful automotive and tyre manufacture and accrued contention globally, among different reasons, a caller study indicates.

The December 2025 variation of GlobalData’s Rubber Bulletin besides states that, arsenic a result, planetary butadiene and synthetic rubber prices are declining.

“Global butadiene prices person decreased since past April, reflecting subdued request from downstream industries,” the study states. “The European butadiene declaration terms for December fell for a ninth consecutive clip to €720 per tonne ($837/t), from €1,050 per tonne successful March 2025. In the US, spot butadiene prices plunged to $562/tonne astatine the extremity of November. In China, home butadiene prices averaged Yuan7,021 per tonne ($988/t) successful November, a 16% simplification from October and a 42% diminution from January 2025. Global SBR and BR prices person moved little successful tandem with butadiene feedstock prices.”

The study notes that the synthetic rubber industry, peculiarly successful the commodity segment, is contending with aggravated contention from Chinese producers amid persistently anemic demand. This operation has eroded profitability and led to the closure of accumulation plants. A consolidation successful Western synthetic rubber accumulation markets is outlined, with the closures of Arlanxeo’s Port Jerome installation successful France and Lion Elastomers’ installation successful the US authorities of Texas. However, request for synthetic rubber varies by rubber grade.

“Demand for precocious rubber grades remains robust supported by the automotive manufacture (OE tyre demand), portion request for commodity rubber grades continues to beryllium sluggish and this is reflected successful the commercialized flows,” the study says.

“In Europe, extra-regional EU27+UK SSBR exports roseate by 30% successful the archetypal 3 quarters of 2025 compared to the erstwhile year, led by a 49% summation successful shipments to China, chiefly from Germany, which points to functionalised SSBR from Synthos (ex-Trinseo). Conversely, extra-regional EU27+UK ESBR exports fell by 10% successful Jan to Sep 2025 year-on-year, led by beardown losses to India. Lower butadiene prices successful Asia, owing to uncertainty linked with the US tariffs combined with brushed demand, accrued the competitiveness of ESBR accumulation successful the portion and, successful turn, led to little European exports to Asia. EU27+UK SSBR and ESBR exports to the US declined by 13% and 39%, respectively, partially owed to the import tariffs.”

Meanwhile, synthetic rubber accumulation successful the world’s biggest marketplace – China – is increasing to conscionable comparatively higher request from the automotive and tyre industries successful the region. Consequently, Chinese synthetic rubber exports are rising, led by increases to the ASEAN region, which points to Chinese tyre manufacturers with plants overseas choosing to import earthy materials from China.