German rubber industry warns Iran conflict could disrupt supply chain

Frankfurt, Germany — Germany’s rubber industry association (WDK) has warned that the military conflict involving Iran could create disruptions across the rubber value chain, particularly through rising energy costs and pressure on chemical suppliers.

“The new geopolitical crisis has the potential to confront the rubber value chain in Germany with existential challenges,” said Michael Klein, WDK president in a 6 March statement.

According to Klein, the "first significant effects" for the manufacturing industry from the military conflict in and around Iran are "already becoming apparent."

The conflict, he said, has already affected global energy markets, particularly gas supply.

While Germany is not directly dependent on gas deliveries from Iran, Klein said global demand for fossil fuels can no longer be satisfied due to the conflict, resulting in 'postponement and price effects.'

The association said increasing gas prices would particularly affect Europe’s chemical producers, which are key suppliers to the rubber industry.

“The already rising gas prices are hitting chemical manufacturers in Europe particularly hard – and with them the key suppliers to the German and European rubber industry,” Klein said.

He added that energy costs for businesses in Germany are currently “three times higher than in the US”, putting domestic manufacturing at a competitive disadvantage.

Klein also pointed to the closure of major petrochemical sites in Germany during 2025 as evidence of the growing pressure on the sector.

“How many external shocks do we still need before policymakers finally roll back the price effects of state regulation?” he asked.

The association called for the abolition of Germany’s fuel emissions trading law (BEHG), arguing that it places additional cost burdens on industry.

At a minimum, Klein said the measure should be “temporarily suspended” for fuels used in 'industrial process heat.'