The European Tyre and Rubber Manufacturers' Association (ETRMA) released their quarterly report, which indicates a robust recovery for the European tyre market in the first quarter of 2025. This resurgence, particularly in the consumer tyre segment, is expected to significantly impact the demand and consumption of crucial raw materials like Styrene Butadiene Rubber (SBR), Polybutadiene Rubber (PBR), carbon black, and steel wire rod.

According to the report, the expanding vehicle parc in Europe is a promising trend that grew by 1.4% in 2024 and is expected to increase further in 2025. The ETRMA also reported a notable 3% growth in consumer tyre sales in Q1 2025 compared to the same period last year, building on the 8% recovery observed in the second half of 2024. A key driver for this growth is the continued strong performance of the Car All Seasons segment, which saw an impressive 14% increase.

This sustained growth in the consumer tyre market signals a heightened demand for essential raw materials. SBR known for its excellent abrasion resistance and used extensively in tyre treads and sidewalls, is expected to witness increased consumption. Similarly, PBR valued for its high resilience and wear resistance, particularly in tyre sidewalls and casings, will likely experience a surge in demand.

The robust performance of the tyre industry will also positively influence the demand for carbon black, a critical reinforcing filler that enhances tyre strength, durability, and wear properties.

Furthermore, the growth in tyre production will have a direct impact on the demand for steel wire rod, a key component in tyre reinforcement, particularly in radial tyres, providing structural integrity and load-bearing capacity.

Used in inner liners of tyres for air retention, the demand for halo butyl rubber is expected to rise in line with increased overall tyre production, especially if the trend towards longer-lasting tyres continues.

EPDM Rubber is employed in various tyre components for its resistance to weathering and ozone. the stable growth in the automotive sector will likely sustain and increase the demand for EPDM.

Insoluble suphur is another crucial vulcanizing agent in tyre manufacturing. The consumption of it will directly correlate with the overall increase in tyre production volumes.

Used as an antiozonant and antioxidant in tyres to prevent degradation, the increased tyre production will lead to higher demand for Para Phenylene Diamine (PPD).

Stearic acid demand is also expected to surge, as it is used as a processing aid and activator in rubber compounds.

The ETRMA report also highlighted a significant surge in tyre imports into Europe (EU27 plus UK). Passenger car and light truck tyre imports increased by 12% in the first two months of 2025, following a 17% rise in 2024. This increase in imports, particularly from regions like China, Korea, and India, suggests a dynamic shift in the supply chain and competitive landscape of the European tyre market.