IRSG Rubber Industry Report signals weaker Q2 demand

Singapore – The International Rubber Study Group (IRSG) has released its Rubber Industry Report (July–September 2025), providing an updated assessment of global rubber demand, supply and trade developments for the first half of 2025.

According to the report, global rubber consumption in Q2 2025 amounted to 7,907 thousand tonnes (kt), a 0.6% decline compared with Q2 2024, as downstream demand in tires, automotive and industrial rubber goods came under pressure. However, consumption for the first half of 2025 reached 15,819 kt, representing a 1.9% increase over the same period in 2024, supported by stronger performance in Q1 2025.

Both major segments recorded modest gains in the first half of the year. Natural rubber (NR) consumption in H1 2025 increased by 1.5% year-on-year, while synthetic rubber (SR) consumption rose by 2.2%, indicating that structural demand drivers remain present despite short-term headwinds.

On the supply side, global natural rubber production in Q2 2025 edged up by 1.2% year-on-year to 3.053 million tonnes, contributing to a 2.8% increase in NR production in H1 2025. In contrast, global synthetic rubber production in Q2 2025 declined by 3.7% to 3,927 kt, down from 4,078 kt in Q2 2024. Even so, synthetic rubber production in H1 2025 was up 0.5% year-on-year, reflecting moderate growth over the full period.

Trade flows show a similarly mixed picture. Global natural rubber exports reached 6,089 kt in H1 2025, up 10.6% year-on-year, with Q2 2025 exports rising 12.1% compared with Q2 2024. However, the report notes that NR export volumes have eased in recent months, reflecting cautious market sentiment and ongoing global trade uncertainties.

Meanwhile, global synthetic rubber exports totaled 5,473 kt in the first half of 2025, a 2.9% decline from the same period in 2024. Q2 2025 synthetic rubber exports fell 5.7% year-on-year, and exports gradually declined by 4.8% from January to June 2025, amid tariff concerns, geopolitical tensions and broader trade uncertainty.