Demand for rubber (natural and synthetic) is projected to increase gradually in 2025, primarily for automotive and industrial applications. International organizations and research institutes project a year-on-year increase in natural rubber prices in 2025 , with tight supply and demand likely to persist due to supply constraints (e.g., climate change and shifts in cultivation) . The World Bank
point | detail | Implications |
|---|---|---|
| global demand | Expanding rubber consumption by 2025 (led by China and India) | Favorable demand environment for tires and parts. The World Bank |
| Price phase | Natural rubber prices are expected to rise 14% annually in 2025 , with a gradual correction in 2026. | Factors such as export unit prices and margin defense and rising raw material procurement costs need to be reflected. The World Bank |
| supply risk | Global Production < Consumption Continuity Projections 2025 (ANRPC) | A medium- to long-term high-price phase is possible → Contract/hedging strategies are required. Reuters |
| Variable factors | Weather, exchange rate, logistics (freight rates), and Chinese demand | Quarterly price/volume volatility management is essential. World Bank Blogs |
"Rubber products" in this report encompasses exports of tires (4011), industrial belts, hoses, and gaskets (4010/4016), rubber products for hygiene, medical, and household purposes (4018, etc.), and synthetic rubber (4002)-based processed products within HS Class 40. Detailed product mapping can be confirmed using KOSIS/Trade Association HS codes. KOSIS
Category | Representative HS | Main purpose | Export points |
|---|---|---|---|
| Tires and tubes | 4011·4013 | Passenger and commercial vehicles | Price/logistics sensitive, targeting OEM and aftermarket simultaneously |
| Industrial belts and hoses | 4010·4009 | Conveyor/Hydraulic | Competition in material, heat resistance, and oil resistance standards |
| Gaskets and packings | 4016 | Plants and Machinery | Linkage of industrial and energy facility demand |
| Hygiene, medical care, and other | 4018 etc. | Gloves and consumables | Regulatory/certification compliance is important |
Tire and parts exports have traditionally been concentrated in the US, EU, and Southeast Asia . Supply chain restructuring and compliance with environmentally friendly standards are key factors in market expansion. Macro trade flows (US-Korea trade, adjustments to China dependence, etc.) also influence the diversification of demand sources. Reuters
First market | characteristic | Q3 2025 Implications |
|---|---|---|
| USA | Aftermarket Sizes, Regulations Clear | Potential for volume expansion if exchange rates and logistics stabilize. Reuters |
| EU | Strict environmental and chemical substance regulations | Compliance with REACH/RoHS/ESG labels is key. |
| ASEAN | Increased investment in automobiles and equipment | Leverage our strengths in price competitiveness and lead time. |
| Middle East | Infrastructure project linkage | There is demand for large-scale deliveries and special specifications. |
Synthetic rubber and processing capacity are driven by major domestic chemical and materials companies. Export potential exists through the three tire companies and the industrial rubber value chain . Quantitative figures are confirmed through HS-specific breakdown. Korea.net
division | movement | Export implications |
|---|---|---|
| Synthetic rubber (4002) | Domestic sales + exports in parallel | Strengths of a consistent material-processing value chain |
| Tires and industrial materials | Global OEM/AM network | Potential for expansion into high-value-added standard and specialty products |
| bottleneck | Raw material prices, logistics, and energy costs | Price transfer/long-term contract required |
Tires: Safety and quality regulations such as ECE/UN, DOT, etc.
Industrial: ISO/ASTM heat, oil, wear and pressure resistance standards.
EU: REACH/RoHS compliance required → Mixing and plasticizer management system required.
Standard group | Area of application | checkpoint |
|---|---|---|
| ISO/ASTM | Belts, hoses, and gaskets | Material properties and durability test data sheet available |
| ECE/DOT | tire | Driving, braking, and noise labeling |
| REACH/RoHS | EU-wide | SVHC·Hazardous Substance Management |
(International Standards Overview, Industry Practice-Based Summary)
A multi-certification portfolio tailored to the target market is required, including ISO 9001/14001 , automotive IATF 16949 , EU CE/REACH , and North American DOT .
certification | purpose | Target market |
|---|---|---|
| IATF 16949 | car quality | Global OEM/AM |
| CE/REACH | Safety and Chemicals | EU |
| DOT | safety | USA |
Even as the surge in raw material prices eases in the second half of 2025, container and exchange rate volatility will persist. For rubber products, freight rates are significantly affected by volume and weight , making long-term freight and warehouse strategies key. World Bank Blogs
root | characteristic | Q3 points |
|---|---|---|
| Americas and EU Maritime | Bulk/standard transportation | Long-term freight and forwarder diversification |
| ASEAN short-haul | Empty lead time and mixed glass | Optimizing LCL and intermodal transport costs |
| Aviation (special/emergency) | High-priced, urgent delivery | Limited use (sample/high value added) |
Tires and large industrial materials are customary in pallet/container units , while gaskets and packing materials are advantageous in small quantities of a variety of products based on specifications and drawings .
Product group | General MOQ | note |
|---|---|---|
| Tire (4011) | Hundreds to thousands of units by model and specification | AM dealer network contract type |
| Belts and hoses (4010/4009) | Dozens to hundreds of rolls | Consultation on specifications and length |
| Gaskets and Packing (4016) | Thousands to tens of thousands of pcs | Mold/drawing based |
Portfolio composed of domestic synthetic rubber, tire, and industrial rubber major companies + mid-sized processing companies (belts/hoses/gaskets).
We recommend strengthening AM (Aftermarket) links with global buyer networks and dealerships .
division | Competency | Export points |
|---|---|---|
| synthetic rubber giant | Materials/Resins | Specialty/Eco-Friendly Blend |
| three tire companies | OE·AM simultaneous | Labeling, noise, and fuel efficiency strengths |
| Industrial rubber processing company | Custom specifications | Short delivery time, small quantity, multi-variety |
organ | role | Utilization Points |
|---|---|---|
| KITA (Trade Association) | Trade Trends, Buyer DB, and Reports | Monthly Export and Import Trends (Q3). Korea International Trade Association. |
| KOTRA | Market research, consultations, and buying missions | EU/America Certification and Buyer Matching |
| Statistics (KOSIS) | Aggregation by HS code | Verification of numerical data by product and country. KOSIS |
cord | item | Q3 Summary |
|---|---|---|
| A | Unit price (USD) | Natural rubber prices are rising (25 y/y +), and synthetic rubber is also following suit. The World Bank |
| B | seasonality | New car and tire replacement peak season (varies by region). |
| C | Tariffs and non-tariffs | Beware of EU chemical labeling and US safety and country of origin regulations. |
| D | Domestic alternative | Synthetic rubber and processing capabilities increase → Potential for internalization of added value. |
| E | ESG/Net Zero | Demand for recycled and bio-based rubber is growing (sourcing, Europe-focused). Reuters |
| F | Country Risk | Weather, exchange rate, and logistics (freight) volatility persist. World Bank Blogs |
| G | Buyer List | Targeting AM dealers and plant EPC/equipment companies in the Americas/Europe. |
ΔExport: Strong global demand + price support → Moderate growth scenario is preferred.
ΔPrice: Tight raw material and weather conditions → Possibility of a strong consolidation
ΔCountryShare: Defending the Americas and EU, Driving ASEAN/Middle East Projects
TrustIndex: 0.64~0.72 (Neutral+)
characteristic | Q3 Observation | Q4 Outlook | Comments |
|---|---|---|---|
| ΔExport | Slight increase | ▲ Slightly↑ | Price support and strong demand |
| ΔPrice | Kang Bo-hap | ▲ Kang Bo-hap | Reflecting ANRPC and World Bank forecasts. Reuters |
| ΔCountryShare | US/EU centered | → Maintain ~ Slightly↑ | AM·Standard Certification Effect |
| Trust Index | 0.68 | 0.64~0.72 | Inherent meteorological and logistics variables. World Bank Blogs |
Product Portfolio: Dual-purpose tires (labeling/noise/fuel efficiency) + industrial specialties (heat/oil/wear resistance).
Price/Hedging: Quarterly fixed price + linked price, considering hedging against NR/synthetic key indicators. The World Bank
Market development: Leverage project-type orders from ASEAN and respond to environmentally friendly AM and EU standards in the Americas.
ESG Labels: REACH/RoHS, Low-Carbon, and Recycled Resin Storytelling (Procurement/European Glass). Reuters
Logistics optimization: forwarder diversification, LCL/intermodal transport, and local warehouse collaboration.
