The German rubber industry is facing an "exceptionally difficult economic situation" amid soaring raw material and energy costs and weak industrial demand, according to the German rubber industry association (WDK).

Michael Berthel warned that the industry is experiencing an "almost unprecedented economic disparity" as "raw material costs are approaching historic highs like those seen in 2011 and 2022".

Demand, meanwhile, remains too weak to offset the burden, said Berthel. According to the association, prices for many key raw materials this month stand "dramatically above" levels seen in the final quarter of 2025, following developments linked to the Iran conflict.

Natural rubber prices have risen by "more than 40%" within a few months, while butadiene-based synthetic rubbers have recorded increases of "more than 30%," WDK said.

The association added that EPDM synthetic rubber, industrial carbon black and oil-based plasticizers have all seen price increases of more than 20%, while some chemicals have exceeded "the 40% mark" in cost increases within weeks.

At the same time, the industry continues to face high energy costs, with recent developments in the Middle East further increasing uncertainty in energy markets.

The German association also warned that risks to international transport and supply chains remain, with companies "watching possible impacts on raw material availability and global logistics flows with great concern".

"Companies are coming under increasing pressure," Berthel said, citing "high raw material and energy costs, geopolitical uncertainties and the structural disadvantages of Germany as a business location". "There is currently no sign of short-term relief", he added.