Higher international crude oil prices continue to push up the cost of petrochemical feedstocks used in the manufacture of synthetic rubber. As synthetic rubber is derived from petroleum-based raw materials such as butadiene and styrene, sustained increases in crude oil prices are raising production costs for manufacturers and narrowing the price gap between synthetic and natural rubber. This is expected to influence procurement strategies across the tyre and industrial rubber sectors.

The increase in raw material costs is also likely to affect manufacturers of industrial rubber goods, belts, hoses, seals and automotive components that rely heavily on synthetic elastomers. While some producers may attempt to pass on higher costs through price revisions, others are expected to focus on productivity improvements, cost optimization and alternative sourcing strategies to maintain profitability amid continued volatility in energy markets.