I. Global Industrial Investment: Capacity Expansion and Accelerated Regional Layout
Chinese enterprises accelerate their overseas expansion efforts
Linglong Tire plans to invest 8.7 billion RMB to build a large greenfield factory in Brazil, with an annual production capacity of 14.7 million high-performance radial tires and 6,000 tons of liquid recycled rubber. The project will be completed in three phases by 2032, serving the South American market and enhancing its "7+5" global layout. .
Kumho Tire announced a 502 million euro investment to build the first European production base in Poland. It is expected to start production in August 2028. The first phase of the project will have an annual production capacity of 6 million passenger car tires. Subsequent expansions will be carried out based on market conditions. At the same time, it plans to build a new factory in Hamyang, South Korea, by the end of 2027, to take over the production capacity that was relocated after the fire at the Gwangju factory. .
Capacity upgrading and transformation of international giants
Hankook Tire has restarted the expansion project of its factory in Hungary, investing approximately 540 million euros. After completion in 2027, it will increase its annual production capacity of commercial vehicle tires by 800,000 units (compared to the original plan of 550,000 units); at the same time, it plans to start a truck tire production line in Tennessee in July 2026, aiming to achieve 85%-90% of truck tire sales in the US to be locally supplied by 2027. .
The Danaoso Group has expanded its SSBR production capacity by 20,000 tons per year at its base in Gahano, Spain, and has added 10,000 tons per year of SBC production capacity at its base in Altamira, Mexico. The products are mainly used in electric vehicle tires and plastic modification fields. .
BKT has announced a 35 billion rupee three-year investment plan, aiming to double its revenue by 2030, while expanding the production capacity of non-road tires and carbon black, and enhancing its energy self-sufficiency to consolidate its global position. .
Rise of production capacity in emerging markets
The 300,000-ton per year butadiene and synthetic rubber project in Atlay region of Kazakhstan has signed an EPC contract with Sinopec Engineering Group. It is planned to be put into operation in 2029 and will fill the gap in synthetic rubber production capacity in Central Asia. .
II. Market Prices: Imbalance in Supply and Demand Drives Price Increase
Global Supply and Demand Pattern Reverses
The latest report from ANRPC shows that in 2026, global demand for natural rubber will reach 1560.2 million tons, while production will only be 1532.4 million tons, resulting in a supply-demand gap of approximately 40 million tons. The market has shifted from "temporary surplus" to "structural shortage". Major producing regions such as Thailand and Yunnan have experienced continuous drought, with aging rubber trees and increased disease problems, leading to extremely low supply price elasticity. Even a small gap can push up the price. .
Price Dynamics and Driving Factors
In April 2026, the futures price of natural rubber on major exchanges in the Far East reached a two-year high. The Osaka OSE contract led the rise, breaking through the key resistance level. The reference price of Malaysian Standard Rubber (SMR20) rose by 2.5 cents to 785 cents per kilogram within the week, and the bulk price of latex increased by 17 cents to 665 cents per kilogram. .
The Rubber Bureau of Thailand predicts that the global price of natural rubber is expected to maintain a strong trend in 2026. The main support lies in the fact that global demand has exceeded supply for the sixth consecutive year, and due to climate change and pest infestations, the growth in production has fallen short of expectations (it is expected to increase by only 2.4% to 15.2 million tons). .
Geopolitical factors and fluctuations in crude oil prices have increased the cost of synthetic rubber. Some industrial sectors have temporarily increased the proportion of natural rubber usage, further boosting the demand for natural rubber. .
III. Technological Innovation: Dual-driven by Intelligence and Greening
Breakthrough in Intelligent Tire Technology
Titan International has collaborated with Brain Sensor Technology Company to launch the P2 intelligent tire system. This system can monitor real-time data such as tire pressure and temperature, enabling automatic pressure adjustment during driving. It is compatible with various agricultural tires and inflation management systems, reducing soil compaction and increasing crop yields. It sets a new benchmark for intelligent tire management in agriculture. .
Green Circulation and Biobased Materials
Sumitomo Rubber Industries has for the first time applied recycled carbon black in Dunlop's mass-produced tires. This material is made through a chemical recycling process of tire production waste and old tires in collaboration with Mitsubishi Chemical. Its performance has been verified in racing tires and it is promoting the circular economy transformation in the tire industry. .
The Finnish company NemusMaterials plans to build a new factory for bio-based tire fillers in Kotkä. The bio-materials developed by the company are composed of natural rubber and micro-fibred cellulose, aiming to replace fossil-based raw materials such as carbon black, reduce the carbon footprint of tires, and be compatible with existing production processes. .
IV. Enterprise Updates: IPO Expansion and Industry Chain Integration
Tongcheng New Materials Files for IPO in Hong Kong
Tongcheng New Materials (603650.SH) submitted an IPO application to the Hong Kong Stock Exchange in February 2026. Its core business includes global tire-grade phenolic resin rubber additives (ranked first in global and Chinese markets in sales amount for the first nine months of 2025), semiconductor photolithography resins, and degradable materials. Revenue increased from 2.937 billion yuan to 3.263 billion yuan from 2023 to 2024, and net profit rose from 404 million yuan to 534 million yuan. The electronic materials segment became the core driver of profit improvement. .
Supply chain integration and mergers
The Dutch MagnaTyres Group announced the acquisition of the leading tire service provider Telescope Tyres Group in Australia. After the integration, the combined annual revenue is expected to reach 75-80 million Australian dollars, strengthening its market presence in Australia. . China Taiwan's Huafeng Rubber has completed the acquisition of the former Sumitomo Rubber factory in Tonawanda, New York State, USA, to establish a regional manufacturing and innovation center. .
V. Policies and Industry Trends
EU Regulatory Pressure
The European Tyre Association (TyresEurope) stated that the EU's automotive regulatory simplification plan does not cover the tyre sector, which may result in non-compliant tyre inspections. The association called for excluding tyres from this legislation and achieving the simplification goal through strengthened market supervision. .
Policy support for emerging markets
Cambodia is promoting local procurement of rubber in the tire industry within the country, improving the supply chain and reducing reliance on imports; India, through the "China + 1" strategy and trade agreements, is enhancing the competitiveness of the rubber industry, and the demand for natural rubber is expected to increase by 3.6% in 2026.