1. Market Dynamics

The European Chemical Industry Council (Cefic) recently launched a ten-point action plan for the EU transport single market, which covers unified management of rail capacity, support for rail transport of whole wagons, upgrading modern combined transport, and promoting the transition to zero-emission vehicles. The plan aims to break down transport and logistics barriers, enhance competitiveness, and accelerate emissions reduction.

According to the Japan Exchange Group (JPX) on January 12, global natural rubber futures prices climbed to a near nine-month high during the week, supported by spot demand, arbitrage and speculative buying. Both trading volume and open interest rose, and rubber contracts on major exchanges all recorded gains, with the Shanghai Futures Exchange showing a remarkable increase of 2.2%.

The European Chemicals Agency (ECHA) has released guidelines and charts on the use of perfluorinated and polyfluoroalkyl substances (PFAS) in preparation for an upcoming industry-wide consultation on restrictions. The European Sealing Association (ESA) is urging industry players to pay attention to and participate in this assessment, while also noting that sectors not included in the industry-specific assessment may face more complex challenges.

2. Industry Data

According to data from the Department of Statistics Malaysia, in November 2025, Malaysia's natural rubber production and exports both declined sharply, with production falling by 48.2% year-on-year and exports decreasing by 14.7% year-on-year. China remained its largest export market with a share of 50.8%. Meanwhile, natural rubber consumption bucked the trend and increased by 14.9%, with the latex glove industry accounting for 67.4% of total consumption.

According to data from the European Automobile Manufacturers Association (ACEA), new car registrations in the EU in November 2025 increased by 2.1% year-on-year, reaching a total of 9.86 million vehicles in the first 11 months, a growth of 1.4%. Pure electric vehicles accounted for 16.9% of the market, hybrid vehicles for 34.6%, while the shares of gasoline and diesel vehicles declined to 27% and 9% respectively, indicating a continued market shift towards electrification.

3. New products and technologies

Toyota Gosei announced the successful commercialization of high-percentage recycled rubber automotive sealing strips. By improving desulfurization technology, the proportion of recycled materials in the product has been significantly increased from less than 5% to about 20%. The product is used in the new Toyota RAV4 model. The company plans to expand the technology to the field of natural rubber recycling and cooperate with automakers to build a recycling system for rubber materials from end-of-life vehicles.

Synthomer received two grants through the Akron Polymer Innovation Centre, including a collaboration with the University of Akron to research the conversion of carbon dioxide into high-value polymers and butadiene, and support for the company’s technology application in the conversion of polystyrene into polypropylene, promoting the development of sustainable polymer materials.

4. Investment and Production

Sumitomo Corporation of Japan announced that it will invest 441 million Indian rupees in Bawar, Haryana, India, to build a new automotive hose factory for its joint venture SRK-IR, which is expected to start production in February, strengthening its supply to customers in northern India. SRK-IR is a joint venture established in 2005 by Sumitomo Corporation and India's IAI Group, specializing in supplying fuel hoses and components to Indian automakers.

Metso has announced an investment in a new rubber products factory in Quzhou, Zhejiang Province, primarily producing rubber liners, steel-rubber composite liners, and Trellex® screens. This move aims to meet local market demand and strengthen the regional supply chain, with production planned to gradually commence in the first half of 2026.

5. Company News

Sumitomo Rubber announced that it has added sustainable carbon black produced through a chemical recycling process to passenger car tires for the first time. This technology has been successfully proven in SUPER GT racing tires. This move is part of its collaboration with Mitsubishi Chemical to promote resource recycling.

Kumho Tire has partnered with UK simulation technology company Ansible Motion to introduce driver-in-the-loop simulators into its R&D process. The aim is to shorten the development cycle of tires for electric vehicles and high-performance vehicles through digital simulation technology, enabling early verification and optimization of product performance.

German waste tire pyrolysis company Pyrum has reached a joint venture agreement with Hamburg-based storage tank operator Unitank to jointly build 5 to 10 waste tire recycling plants across Europe over the next few years. The new company, UniPyrum, will be 51% owned by Unitank and 49% by Pyrum, with an annual recycling capacity of at least 22,000 tons.

Sibur announced the completion of overhauls at its Nizhny Kamssk petrochemical complex in Russia, extending the maintenance cycle for some rubber units from one year to two years. The next overhaul of the butyl rubber plant is scheduled for 2027. This was the first time Sibur independently completed a major overhaul of imported turbines. Utilizing a digital platform, the overhaul scale was expanded by 50% year-on-year, achieving cost reduction and efficiency improvement.

Bridgestone, Ethiopian Airlines, and Ethiopian Airports Group have launched a runway foreign object debris (FOD) mitigation project. The project leverages tire inspection data and technology to optimize inspections and create risk maps. Once implemented, it will effectively reduce the frequency of tire failures and improve flight punctuality.

Nokian Tire's Romanian plant aims to produce one million tires annually by 2025. The plant, which began operations in 2024, produces passenger car tires exclusively for the European market. As the world's first fully zero-carbon emission tire plant, it uses no fossil fuels for energy and is expected to become Nokian Tire's largest production base, accounting for 40% of its total capacity upon full completion in 2027.