According to a recent analysis by the International Rubber Study Group (IRSG), an inter-governmental organisation composed of rubber producing and consuming stakeholders located in Singapore, India's rubber industry demonstrated robust performance in the first half of 2025. The sector saw demand for both natural and synthetic rubber continue to outpace supply. Natural rubber consumption grew by 2.1 percent against a 1.9 percent production increase. The synthetic rubber market expanded even more rapidly, with consumption rising 5.6 percent and production increasing 5.4 percent.

The automotive tyre industry remains the primary market force, consuming 62.8 percent of all natural rubber and 68.9 percent of synthetic rubber. This sustained demand from tyre manufacturers occurred alongside mixed vehicle sales figures. While passenger car sales experienced a slight decline of 0.1 percent, this was counterbalanced by healthy growth in the two-wheeler and three-wheeler segments, which increased by 0.9 percent and 6.5 percent, respectively.

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The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for September 2025, providing an overview of key developments in the global natural rubber sector.

The ANRPC Statistics and Information Committee (ISC) presented an updated perspective on the global supply-demand landscape for 2025 and examined updated 2024 statistics and growth rates during the October 2025 Annual Assembly Sessions. September saw price volatility and pressure as output increased while demand stayed low. However, tapping activities were limited in several producing regions due to rains and labour limitations, which contributed to a passive production rise that was not anticipated during the peak production season.

Global natural rubber (NR) output is expected to increase slightly by 1.3 percent in 2025 compared to 2024, according to recent reports from ANRPC member nations, after Indonesia's production base was revised downward. Concurrently, it is anticipated that NR demand would increase by 0.8 percent in 2025 due to an increase in Indonesia's consumer base. Although there were some indications of recovery in the tyre sector in a few countries, market mood remained divided.

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ARLANXEO, a leading global producer of synthetic rubber, is significantly increasing its synthetic rubber production capabilities at its Brazilian facility in Triunfo. This strategic investment is designed to boost the plant's annual capacity by nearly one-quarter, a direct response to growing customer demand across Latin America and other international markets.

The initiative underscores the company's dedication to the region through a 'local-to-local' strategy, which aims to foster regional economic growth and sustainability. By enhancing local production, the company ensures a more balanced and secure global supply network. The expansion is scheduled to be operational in 2027, promising a more efficient and reliable supply chain for clients. The Triunfo plant is already recognised for its operational excellence and adherence to rigorous international quality and safety standards, a reputation this new project will further solidify.

Angelo Brazil, Chief Manufacturing Officer, ARLANXEO, said, “After a successful installation that increased capacity to 65kt at our polybutadiene plant, the response from our customers has been outstanding. We are now taking the next step and will further expand our capacity by 25 percent. This underscores our confidence in the Latin American market, and our commitment to providing reliable, high-quality products close to our customers. With strong performance, a well-run operation and a market with solid customer demand, we’re perfectly positioned for continued growth.”

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In a significant advancement for materials science, Shin-Etsu Chemical has pioneered a new class of thermoplastic silicone, effectively overcoming the longstanding recyclability challenges associated with conventional silicone rubber. This innovation is a core component of the company's Silicones Solution-Engineering initiative, which leverages sophisticated silicon chemistry. Traditional materials are broadly categorised as thermoplastics, which can be remelted and recycled, and thermosetting plastics, which undergo a permanent hardening process that prevents recycling. Standard silicone rubber falls into the latter, thermosetting category.

This newly engineered thermoplastic silicone, however, represents a paradigm shift. It retains the desirable soft texture of silicone but introduces a suite of previously unattainable properties. The material is not only fully recyclable due to its thermoplastic nature but also achieves a unique combination of high hardness and exceptional elasticity. Furthermore, its composition allows for excellent transparency and ease of colouring, as it requires no inorganic fillers like silica. From a manufacturing perspective, it offers excellent processability, suitable for standard plastic injection moulding and even formulation into solvent-based coatings for diverse applications.

The potential uses for this material are extensive and novel. It is expected to enable new applications in consumer electronics, such as soft-touch components for mobile devices and sports equipment, and in the medical field for protective coatings on caregiving devices. By offering a spectrum of properties from rubber-like elasticity to plastic-like rigidity, Shin-Etsu can provide highly customised solutions. The product is scheduled for its first public reference display at the 14th PLASTIC JAPAN exhibition, taking place at Makuhari Messe from 12 to 14 November 2025.

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In a strategic move to secure its supply chain, Aluminium Bahrain B.S.C. (Alba) has entered into a partnership with India's Epsilon Carbon. The two companies have signed a non-binding Memorandum of Understanding to explore a long-term arrangement for the supply of liquid coal tar pitch, a critical raw material for aluminium smelting.

This initiative, launched at the Gateway Gulf Forum 2025 in Bahrain, is designed to enhance Alba’s operational security and efficiency. Concurrently, it supports Epsilon Carbon's strategy to establish a new coal tar pitch melting facility within the Kingdom of Bahrain. The agreement paves the way for future detailed negotiations, which will include trial deliveries and the finalisation of quality and commercial terms.

Ali Al Baqali, CEO, Alba, said, “Our collaboration with Epsilon Carbon marks an important milestone in Alba’s journey to reinforce supply chain reliability and maintain the highest standards of quality. This partnership not only secures a key input for our operations but also supports the growth of Bahrain’s industrial sector. We are confident that this alliance will deliver lasting value for both organisations.”

Vikram Handa, Managing Director, Epsilon Carbon, said, “Our collaboration with Alba is an important step toward sustainable industrial growth. With our coal tar distillation capacity set to reach 750,000 tonnes by 2027 and a USD 20 million investment in the Kingdom of Bahrain, we aim to strengthen regional collaboration and supply chain resilience. This will not only reinforce the India – Kingdom of Bahrain industrial corridor but also help reduce the carbon footprint and realise our vision for a more sustainable and efficient aluminium industry.”

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