Autos demand fall and international competitors weigh on rubber markets

Demand for artificial rubber in Western markets is falling on account of the slowdown in automotive and tyre manufacture and elevated competitors globally, amongst different causes, a brand new report signifies.

The December 2025 version of GlobalData’s Rubber Bulletin additionally states that, in consequence, international butadiene and artificial rubber costs are declining.

“International butadiene costs have decreased since final April, reflecting subdued demand from downstream industries,” the report states. “The European butadiene contract value for December fell for a ninth consecutive time to €720 per tonne ($837/t), from €1,050 per tonne in March 2025. Within the US, spot butadiene costs plunged to $562/tonne on the finish of November. In China, home butadiene costs averaged Yuan7,021 per tonne ($988/t) in November, a 16% discount from October and a 42% decline from January 2025. International SBR and BR costs have moved decrease in tandem with butadiene feedstock costs.”

The report notes that the artificial rubber business, significantly within the commodity phase, is contending with intense competitors from Chinese language producers amid persistently weak demand. This mix has eroded profitability and led to the closure of manufacturing crops. A consolidation in Western artificial rubber manufacturing markets is printed, with the closures of Arlanxeo’s Port Jerome facility in France and Lion Elastomers’ facility within the US state of Texas. Nonetheless, demand for artificial rubber varies by rubber grade.

“Demand for superior rubber grades stays strong supported by the automotive business (OE tyre demand), whereas demand for commodity rubber grades continues to be sluggish and that is mirrored within the commerce flows,” the report says.

“In Europe, extra-regional EU27+UK SSBR exports rose by 30% within the first three quarters of 2025 in comparison with the earlier 12 months, led by a 49% improve in shipments to China, primarily from Germany, which factors to functionalised SSBR from Synthos (ex-Trinseo). Conversely, extra-regional EU27+UK ESBR exports fell by 10% in Jan to Sep 2025 year-on-year, led by robust losses to India. Decrease butadiene costs in Asia, owing to uncertainty linked with the US tariffs mixed with gentle demand, elevated the competitiveness of ESBR manufacturing within the area and, in flip, led to decrease European exports to Asia. EU27+UK SSBR and ESBR exports to the US declined by 13% and 39%, respectively, partly because of the import tariffs.”

In the meantime, artificial rubber manufacturing on the earth’s greatest market – China – is rising to satisfy comparatively increased demand from the automotive and tyre industries within the area. Consequently, Chinese language artificial rubber exports are rising, led by will increase to the ASEAN area, which factors to Chinese language tyre producers with crops abroad selecting to import uncooked supplies from China.

The disparity between shrinking Western demand and manufacturing and rising Chinese language demand and manufacturing highlights China’s growing significance within the artificial rubber sector, in step with its dominance within the automotive and tyre markets.

“Autos demand fall and international competitors weigh on rubber markets” was initially created and revealed by Simply Auto, a GlobalData owned model.

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