Demand for synthetic rubber in Western markets is falling as a result of the slowdown in automotive and tyre manufacture and increased competition globally, among other reasons, a new report indicates.

The December 2025 edition of GlobalData’s Rubber Bulletin also states that, as a result, global butadiene and synthetic rubber prices are declining.

“Global butadiene prices have decreased since last April, reflecting subdued demand from downstream industries,” the report states. “The European butadiene contract price for December fell for a ninth consecutive time to €720 per tonne ($837/t), from €1,050 per tonne in March 2025. In the US, spot butadiene prices plunged to $562/tonne at the end of November. In China, domestic butadiene prices averaged Yuan7,021 per tonne ($988/t) in November, a 16% reduction from October and a 42% decline from January 2025. Global SBR and BR prices have moved lower in tandem with butadiene feedstock prices.”

The report notes that the synthetic rubber industry, particularly in the commodity segment, is contending with intense competition from Chinese producers amid persistently weak demand. This combination has eroded profitability and led to the closure of production plants. A consolidation in Western synthetic rubber production markets is outlined, with the closures of Arlanxeo’s Port Jerome facility in France and Lion Elastomers’ facility in the US state of Texas. However, demand for synthetic rubber varies by rubber grade.

“Demand for advanced rubber grades remains robust supported by the automotive industry (OE tyre demand), while demand for commodity rubber grades continues to be sluggish and this is reflected in the trade flows,” the report says.

Rubber imports and exports

“In Europe, extra-regional EU27+UK SSBR exports rose by 30% in the first three quarters of 2025 compared to the previous year, led by a 49% increase in shipments to China, mainly from Germany, which points to functionalised SSBR from Synthos (ex-Trinseo). Conversely, extra-regional EU27+UK ESBR exports fell by 10% in Jan to Sep 2025 year-on-year, led by strong losses to India. Lower butadiene prices in Asia, owing to uncertainty linked with the US tariffs combined with soft demand, increased the competitiveness of ESBR production in the region and, in turn, led to lower European exports to Asia. EU27+UK SSBR and ESBR exports to the US declined by 13% and 39%, respectively, partly due to the import tariffs.”

Meanwhile, synthetic rubber production in the world’s biggest market – China – is growing to meet relatively higher demand from the automotive and tyre industries in the region. Consequently, Chinese synthetic rubber exports are rising, led by increases to the ASEAN region, which points to Chinese tyre manufacturers with plants overseas choosing to import raw materials from China.

The disparity between shrinking Western demand and production and growing Chinese demand and production highlights China’s increasing importance in the synthetic rubber sector, in line with its dominance in the automotive and tyre markets.