WDK warns about impact of high rubber materials costs

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 stabilisation or easing of these costs, according to a 17 May statement from the Frankfurt-based trade body.

But in reality, insisted WDK, “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% on average.

And, it stated, there has been no normalisation 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% in 2023, this trend has not continued in the current year,” WDK noted.

Indeed, said the industry body, rubber prices have remained at the same high levels or are “even showing an upward trend... despite a recessionary demand-situation.”

“This means that prices of raw materials for rubber processing are stabilising at a level about 40% higher than in pre-Covid demand-heavy years of 2018 and 2019,” said WDK.

The “logical conclusion” from this development is that rubber processors in Germany need compensation, argued WDK president Michael Klein.

“This development cannot be ignored within the value-chain, nor can politicians allow the 'bleeding out' of a system-relevant industry in Germany,” said the association leader.

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 billion.