.png?width=3000&height=1023&name=Logo%20Alrubber%20Color-01%20(4).png)
The recent implementation of a new tax incentive regime in India boosted car sales. Dealers reported a significant increase in customers, which portends sustained growth in demand for vehicles and, consequently, natural rubber for tire production. Private projections indicate that tire consumption could quadruple over the next two decades, driven by economic expansion and foreign trade.
Despite China's latest economic data falling short of expectations, the automotive market continues to show strength. In August, sales grew 16.4% year-on-year and 14.7% month-over-month, ensuring strong demand for tires. While natural rubber prices fell slightly, inventories continue to decline, and a quick recovery in prices is expected.
The European Commission has proposed postponing the entry into force of the Anti-Deforestation Regulation (EUDR) until the end of 2026. This regulation imposes stricter requirements on imports of land-use-related products. The main argument is the complexity of implementation and the need to give supply chain actors more time. The measure still needs to be approved by the European Parliament and Council.
On the eve of the Golden Week holiday in Asia, major shipping companies intensified their cancellation of services (blank sailings) to avoid a price drop resulting from lower demand. According to Sea-Intelligence, some 544,000 TEUs of capacity were withdrawn on transpacific and Asia-Europe routes in the last four weeks. This is a typical seasonal adjustment at this time of year.
The rainy season in key producing countries continues to raise expectations of lower natural rubber supplies. Thailand's Meteorological Agency forecast scattered showers and severe thunderstorms in the south of the country for the last week of September. These conditions are keeping the market on edge and helping to support international rubber prices.
Submit a comment