Brazilian natural rubber production, estimated at 240,000 tons annually, supplies about half of the domestic demand, with the state of São Paulo leading the activity, accounting for more than 60% of the harvest, followed by Minas Gerais and Bahia. In São Paulo, rubber tree planting is gaining a new arrangement through integration with other crops, such as cocoa. However, even with raw material below the amount needed for processing, the sector has been experiencing a profitability crisis for years due to increased imports of various products that use latex as their main input. The biggest commercial challenge is the influx of finished tires, especially from China. This flow of Asian products at very low prices reduces the industrial consumption of local raw materials by tire manufacturers established in Brazil, putting pressure on domestic prices and threatening the economic sustainability of rural producers. Over the last six years, imports of rubber artifacts have increased by 41%, with the production chain registering a deficit of US$ 1.46 billion, according to data presented last Thursday (28) by Reynaldo Lopes Megna, executive president of the Brazilian Association of Rubber Artifacts Industry (Abiarb) and the Union of Rubber Artifacts and Tire Retreading Industries in the State of São Paulo (Sindibor), as well as executive director of the Association of Tire Retreading Companies in the State of São Paulo (Aresp). In this agenda, a report from the National Association of Tire Industries (Anip) indicates that the share of imported tires in the passenger and truck tire replacement market increased from 31% in March 2019 to 69% in March 2026. "In the case of tires, the massive Chinese imports lead to economic challenges and environmental liabilities. The tires from China coming to Brazil are of low quality, and precisely for this reason they are not viable for retreading, and they also generate a whole environmental problem related to rapid disposal," said the director. According to Megna, tire retreading emerges as an economical and sustainable alternative because it allows for extending the lifespan of tire casings, reducing operational costs and minimizing maintenance downtime, in addition to contributing to circular economy practices. Statistics from Abiarb, Sindibor, and Aresp also reveal that, regarding rubber products, China has also increased exports to Brazil of belts, hoses, gloves, semi-finished items, among others. On that occasion, the leader emphasized that, in partnership with Anip, the entities to which he belongs have been institutionally mobilizing in defense of the national productive sector, and that the topic will be addressed at Expobor and Pneushow, in São Paulo at the end of the month. To learn more about the rubber sector, follow [link/source]. GEB-10 Rubber Indicator, a daily price reference for the Brazilian market recently launched by DATAGRO.
This text was translated by machine from Brazilian Portuguese.