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.

RPG Group’s TyresNmore Elevates Rakesh Tatikonda To Chief Executive Role

RPG Group’s TyresNmore Elevates Rakesh Tatikonda To Chief Executive Role

TyresNmore, the automotive aftermarket e-commerce platform owned by RPG Group, has promoted Rakesh Tatikonda to Chief Executive Officer and announced the change with immediate effect.

Tatikonda, who previously oversaw business operations at the Mumbai-based firm, will spearhead the organisation’s expansion and innovation strategy. The appointment advances RPG Group’s ‘Talent First!’ policy, which rewards internal promotions and develops employees.

The new chief executive brings over 15 years of industry experience, having worked across multiple sectors with companies such as telecommunications giant Reliance Jio and IT services provider Infosys. Before joining TyresNmore in 2022, Tatikonda held senior positions at tyre manufacturer CEAT, where he developed expertise in strategy, operations, marketing and digital transformation.

“My aim is to transform automotive aftercare in India by offering seamless, tech-driven, end-to-end mobility solutions delivered with trust, transparency, and convenience right at the customer’s doorstep,” Tatikonda said in a statement.

TyresNmore operates a doorstep service model for tyre and battery replacement across six major Indian cities: Delhi NCR, Mumbai, Bangalore, Hyderabad, Pune, and Chennai. The platform represents RPG Group’s entry into the growing automotive aftermarket sector, which has seen increased digitisation as consumers seek convenient maintenance solutions.

During his tenure in operations, Tatikonda scaled the business and improved profitability while driving digital transformation initiatives. His track record shows he strengthened operational efficiency and enhanced customer experience in the mobility convenience sector.

Vaculug Acquires Scotland's Tyrefair To Drive Northern Expansion

Vaculug Acquires Scotland's Tyrefair To Drive Northern Expansion

Vaculug, Europe’s largest independent retreader producing high-quality OTR and truck retread tyres for fleets across the UK and Europe, has expanded its UK presence by acquiring Tyrefair in Kinross, Scotland.

This strategic acquisition extends the company's award-winning service further north, ensuring Scottish customers receive the same high-quality OTR and truck retread tyres Vaculug has supplied for 75 years. Since the purchase, the Kinross location has already grown by 25 percent, with an ambitious target to double its business within a year and then double it again.

This move is a key part of Vaculug's 2026 growth strategy, focused on strategic acquisitions that enable better, faster and more sustainable customer service. The acquisition reinforces Vaculug’s long-standing environmental mission, marking a new chapter of sustainable growth with a strengthened Scottish operation.

Nokian Tyres Partners With American Tire Distributors

Nokian Tyres Partners With American Tire Distributors

Nokian Tyres is expanding its US presence through a new nationwide partnership with American Tire Distributors (ATD). This agreement provides Nokian access to ATD’s vast network of over 110 distribution centres, serving roughly 80,000 customers.

The collaboration will efficiently supply tyre shops with Nokian’s complete product lineup, enabling dealers to broaden their inventory. Both companies bring 90 years of experience and a shared dedication to innovation, safety and sustainability. This partnership will offer drivers more choices, supported by Nokian’s award-winning Tennessee factory and ATD’s technology-driven logistics.

This enhanced distribution capability ensures that consumers will have greater access to a full spectrum of high-performance tyres, meeting diverse driving needs and conditions. The alliance strengthens both brands' market positions by combining premium products with an unparalleled delivery system, ultimately improving service for dealers and drivers alike across the country.

Chris Ostrander, SVP, North America, Nokian Tyres, said, “The partnership with ATD enables us to reach more tyre shops and more drivers than ever before. ATD’s robust distribution network, customer service and responsiveness strengthen our agility to serve both new and existing customers.”

USTMA Announces Webinar Series To Advance Circular Economy For ELTs

USTMA Announces Webinar Series To Advance Circular Economy For ELTs

The U.S. Tire Manufacturers Association (USTMA) has announced a new webinar series designed to advance the circular economy for end-of-life tyres (ELTs) in collaboration with the Tire Recycling Foundation. Titled ‘The Road to 100% Tire Circularity: ELTs Going Full Circle’, the initiative aims to foster the development of scalable and profitable markets for recycled tyres. The series will launch in September 2025 and continue through February 2026.

Hosted by John Sheerin, USTMA’s Senior Director of ELT Programs, each session will convene industry experts, recyclers and state policymakers. Their discussions will focus on the latest research and real-world applications that transform waste tyres into valuable resources, thereby diverting them from landfills and generating environmental, industrial and economic benefits.

The programme will explore three of the most promising markets for end-of-life tyres. It begins on 23 September 2025 with a session on tyre-derived aggregate (TDA), examining its use in civil engineering projects like structural fill and stormwater management. A subsequent webinar on 30 October 2025 will cover the growing market for moulded and extruded products made from recycled rubber.

A significant portion of the series will be dedicated to rubber-modified asphalt (RMA), a material known for creating longer-lasting and more sustainable roadways. An introductory session on 20 November 2025 will review the overall performance and benefits of RMA. This will be followed by two regional deep dives: one on 14 January 2026, focusing on practical applications in Midwestern states like Michigan and Ohio, and another on 28 January 2026, exploring its adoption in Southern states including Kentucky and Georgia. The series will culminate on 24 February 2026 with a capstone session providing a comprehensive overview of grant and funding opportunities available to support the growth of these ELT markets.

This initiative addresses a critical need. While tyres are one of the most recycled products in US, and stockpiles have been reduced by 94 percent over the past three decades, the generation of end-of-life tyres continues to outpace their consumption in recycling markets. The webinar series is presented as a strategic pathway to bridge this gap by promoting innovative and sustainable end-use applications.

Those interested in shaping the future of tyre management are encouraged to register for any or all of the webinars through the USTMA website. Attendees will receive a resource kit after each session to help facilitate further discussion and action.

Anne Forristall Luke, President & CEO, USTMA, said, “We view these webinars as a crucial opportunity to connect key leaders across the country and show them that sustainability and economic growth go hand-in-hand. By showcasing proven applications and providing the tools to act, we can collectively turn ELTs from a waste challenge into an economic engine.”

Sheerin said, “As we look to expand ELT markets and unlock the full environmental and economic potential of end-of-life tyres, collaboration is essential. And no one can do it alone. State DOTs, regulators, recyclers and manufacturers must work together to help grow ELT markets through targeted investment, supportive policy and continued research.”