Rubber Market Signals Affect Tyre Production Costs
Global rubber markets showed mixed signals in mid-January 2026, with price fluctuations across major Asian exchanges highlighting ongoing cost pressures for tyre manufacturers, particularly in TBR and OTR segments.
Market Price Movements
- Shanghai Futures Exchange (SHFE): Natural rubber futures in China declined by approximately 1.5%, reflecting cautious demand outlook and inventory adjustments.
- Thailand domestic market: Rubber prices in Thailand remained relatively stable, supported by steady export demand and controlled supply.
- Regional volatility: Mixed pricing trends were observed across Southeast Asia as producers balanced weather conditions, logistics, and demand signals.
Impact on Tyre Manufacturing
- Production cost pressure: Natural rubber remains a key raw material for TBR and OTR tyres, making price fluctuations a direct factor in manufacturing costs.
- Margin management: Tyre manufacturers continue to optimise procurement strategies to manage raw material volatility.
- Pricing strategies: Changes in rubber costs may influence tyre pricing decisions across commercial and industrial segments.
Implications for TBR & OTR Segments
- Heavy-duty tyre sensitivity: TBR and OTR tyres consume higher rubber volumes, making these segments more exposed to raw material cost changes.
- Retreading economics: Rubber price movements also affect retreading costs, impacting fleet maintenance planning.
- Supply chain planning: Manufacturers and distributors are closely monitoring rubber market trends to maintain supply stability.
Industry Outlook
While short-term rubber prices remain volatile, long-term demand from infrastructure, mining, and transportation sectors is expected to support stable consumption. Tyre manufacturers are likely to continue focusing on efficiency, alternative materials, and sustainability initiatives to mitigate cost risks through 2026.