SunSirs: Global Light Vehicle Sales Growth Boosts Rubber Market

According to a recent report by LMC Automotive, global light vehicle sales in October 2025 are projected to reach 96 million units per year, the second highest level this year, only slightly lower than August. Year-on-year data shows that global market sales increased by 2.9% to 8.19 million units in October, while cumulative sales from January to October increased by 5% to 75 million units.

The article shows that global light vehicle sales increased by 2.9% year-on-year, with a cumulative increase of 5%, indicating that increased automobile production will boost tire demand. Styrene-butadiene rubber (SBR), as one of the main raw materials for tire manufacturing, is expected to see increased demand, which is beneficial to spot prices. Tight supply and demand in the spot market for this commodity may support price increases.

The article points out that while global light vehicle sales are growing steadily, nitrile rubber (NBR) is mainly used in automotive seals and industrial products, indirectly increasing demand but with a weaker impact. This is slightly beneficial to spot prices, as the expansion of automobile production may drive downstream consumption, but the impact is small and insufficient to drive a significant price increase.

Increased global sales of light vehicles are driving expanded automobile production, leading to a slight increase in demand for butyl rubber, used in tire inner tubes and automotive parts. This is positive for spot prices, but the impact is limited because butyl rubber accounts for a relatively small proportion of the automotive supply chain, and price changes are mainly characterized by a moderate upward trend.

The growth in light vehicle sales strengthens tire demand. Butadiene rubber, as a major synthetic rubber variety, directly benefits from the expansion of the automotive industry chain, which is positive for both spot and futures prices. Looking at the latest futures data, butadiene rubber contracts (e.g., 2601 closing price 10,360 RMB/ton, change -35) show short-term volatility, but fundamental demand supports a future upward price trend.

The article emphasizes that strong global light vehicle sales are increasing demand for tire raw materials. Natural rubber, as a core raw material, sees a significant increase in demand, which is positive for both spot and futures prices. Combined with the latest futures data, natural rubber contracts (e.g., 2601 closing price 15,195 RMB/ton, change -100) reflect the current market adjustment, but expectations of increased sales may drive a medium-term price increase.

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