Natural Rubber Futures Undergo Volatile Correction; Pyrolysis Oil Receives Official Recognition in France
- Market Dynamics
During the first week of February, natural rubber futures exhibited mixed trends. The Japan Exchange Group noted that the market was influenced by high volatility across the broader commodities sector; specifically, fluctuations in precious metals triggered speculative sell-offs, resulting in a sharp decline in open interest across various exchanges. The OSE July contract rose 1.6% for the week, bolstered by a weakening yen; conversely, the SHFE and INE contracts fell by 2.9% and 2.7%, respectively. The SICOM April contract edged down 0.8% due to profit-taking, while the futures curve structures across the different exchanges varied significantly.
France has officially recognized pyrolysis oil derived from waste tires as a raw material for the chemical industry. This move clarifies the relevant regulatory classification, enhances the predictability of market cooperation regarding recycled raw materials, and establishes a policy foundation for enterprises seeking to expand their investments and production capacities in this sector.
The German Chemical Industry Association (VCI) has welcomed the trade agreement reached between the European Union and India, stating that it will strengthen export activities and supply chains within the chemical and pharmaceutical sectors, thereby facilitating European companies' access to India—a key growth market.
The European Chemicals Agency (ECHA) plans to add four chemical substances to the REACH Authorization List. This list includes two UV absorbers (UV-326 and UV-329) commonly used in rubber products; consequently, companies will be required to obtain the necessary authorization for their continued use of these substances.
- Industry Data
The European Tyre & Rubber Manufacturers' Association (ETRMA) has released data indicating that the European replacement tire market is expected to perform weakly in 2025, with sales declining across most core product categories. Sales of passenger car tires are projected to fall by 2% for the year; truck and bus tires, as well as agricultural tires, are both expected to decline by 4%. Motorcycle tires represent the sole category showing growth, with an anticipated increase of 4%.
- Investment and Production Initiatives
Zhejiang Henghe Group plans to invest over one billion RMB to establish a facility in Nanjing dedicated to high-end elastomer materials and additives, focusing specifically on the R&D and production of related products. Leveraging the company's technological expertise in upgrading high-end tire petroleum resins, the project aims to develop and manufacture products characterized by high technical barriers, high added value, and low environmental impact—such as high-performance thermoplastic elastomers designed to enhance the quality of hygiene materials.
Birla Carbon has commissioned a new sustainable carbon black finishing line in Italy. Raw materials for this facility are supplied by Circtec’s pyrolysis plant in the Netherlands, a move that supports the company in achieving its goal of recycling 300,000 tons of end-of-life tires annually by 2030.
