FRANKFURT, Germany—German rubber industry association the WDK has voiced concerns over the continuing impact of high raw-materials costs on rubber processors.
The "official representation" points to a stabilization or easing of these costs, according to a May 17 statement from the Frankfurt-based trade body. But WDK insisted that the reality is, "there is no relief (on materials prices) as inflation continues to rise beyond the high levels of the previous year."
According to WDK, 2021 and 2022 saw unprecedented price increases for rubber raw materials—by up to 75 percent on average. And, it stated, there has been no normalization of materials markets since the surge in pricing recorded over those two years.
"Although prices for the most commonly used rubber compounds—natural rubber, SBR, CR, EPDM, NBR—decreased by 8-13 percent in 2023, this trend has not continued in the current year," WDK noted.
The industrial body said rubber prices have remained at the same high levels or are trending upward even as a recessionary demand situation settles in.
"This means that prices of raw materials for rubber processing are stabilizing at a level about 40 percent higher than in pre-Covid, demand-heavy years of 2018 and 2019," WDK said.
Therefore, WDK President Michael Klein noted, the "logical conclusion" from this development is that rubber processors in Germany need compensation.
"This development cannot be ignored within the value-chain, nor can politicians allow the 'bleeding out' of a system-relevant industry in Germany," Klein said.
WDK represents over 200 tire and technical elastomer products manufacturers in Germany, with nearly 70,000 employees and an annual turnover of more than $10.8 billion.