Comment: Impact of Russia sanctions on rubber industry
9 Mar 2023
There is enough time, until the middle of next year, to organise the supply-chains, approvals and applications
ERJ has received the following viewpoints from an industry observer:
London – Whatever sanctions the EU imposes, the impact on Russia is too small but households and entire industries in Europe are suffering with higher [product] costs, higher energy costs and disrupted supply-chains.
Ecologically there is also an impact, as only a small part of the sanctioned synthetic rubber and carbon black materials can be covered locally in Europe.
Handling around 1,000 kilotonnes of Russian material – synthetic rubber and carbon black combined – from other sources, means much more container-handling by trucks, transloading, another transport means across Europe.
Nevertheless, there is enough time, until the middle of next year, to organise the supply-chains, approvals and applications.
For now, there is enough material available – helped by a slowdown in tire production due to high inventories and unexpectedly poor winter tire sales.
So, for the moment, I don’t see price impacts because there is enough material supply.