Global rubber production, consumption decline in first half

Singapore – Global rubber production and consumption declined in the first half of 2026, amid "geopolitical tensions," volatile energy prices and continued uncertainty over industrial demand.

Worldwide rubber production fell 3.7% year-on-year, while consumption declined 3.6%, said the International Rubber Study Group's (IRSG) in its latest Rubber Statistical Bulletin without providing figures. 

The declines reflected "supply constraints, manufacturing cost pressures and uneven demand conditions" across the global rubber industry, the Singapore-based organisation said.

Natural rubber (NR) production declined 2.3% year-on-year during the six months, with notable reductions in Indonesia, Myanmar, Malaysia and Vietnam.

The decline was attributed to "unfavourable weather conditions, disruptions to tapping activities and longer-term structural challenges."

Global NR consumption, meanwhile, fell 2.8%, with significant declines reported in South Korea, India, the US and Thailand.

IRSG linked the weaker demand to automotive and tire industry performance, "cautious raw-material procurement" and changing manufacturing conditions in major consuming markets.

Despite the decline in consumption, global NR demand continued to exceed supply, according to the organisation.

The reported first-half deficit stood at 1.47 million tonnes, narrowing 4.7% compared with the corresponding period of 2025.

Synthetic rubber markets weaken

Synthetic rubber (SR) production declined 4.7% year-on-year in the first half, with lower output reported in Japan, Russia, South Korea, Taiwan, China and the US.

The contraction came amid "volatile petrochemical feedstock prices," higher energy and operating costs, and supply-chain disruptions.

Global SR consumption also fell 4.4%, with notable reductions in China, the US, the Netherlands, Thailand, Russia and Taiwan.

IRSG attributed the weaker demand to softer activity in the tire, automotive and non-tire rubber sectors, alongside uncertainty affecting production schedules and purchasing decisions.

Looking ahead, the organisation warned that global rubber markets were likely to "remain cautious, as volatility in crude oil prices, disruptions to international shipping, and uncertainty surrounding consumer spending continue to shape the market outlook."

An easing of geopolitical tensions and more predictable energy and shipping flows, IRSG noted, could help stabilise petrochemical feedstock supplies, reduce logistics costs and ease inflationary pressures, it said.

Improved economic confidence could, in turn, support automotive demand, vehicle and tire production, and overall rubber consumption.