German rubber industry reports easing raw material supply amid Middle East tensions, but costs remain high

Germany’s rubber industry is seeing improved raw material availability despite ongoing geopolitical tensions in the Middle East, according to the latest third-quarter member survey by the industry association WDK. The survey, released on 22 July 2026, indicates that concerns over raw material shortages have eased, with companies no longer expecting imminent supply disruptions. However, the cost burden remains severe, with natural rubber (NR) prices hitting a two-year high. WDK chief economist Michael Berthel emphasized that while availability is currently assured, prices are unlikely to drop significantly. “The previously clearly tense expectations on the raw materials side have calmed down,” Berthel stated. “Our companies are not currently expecting shortages of raw materials in the short term.” He warned, however, that the situation remains “highly volatile,” particularly due to tensions around the Strait of Hormuz. The WDK raw material index for a typical natural rubber compound has climbed to its highest level in around two years, reflecting persistent cost pressures. Berthel noted that while availability is improving, affordability remains a critical challenge, especially in Germany, where high energy prices further strain operations. The survey also highlighted uneven market conditions, with export markets outperforming domestic demand. “There can be no talk of a real recovery yet,” Berthel concluded. “As long as the upfront costs continue to burden companies, the situation will remain fragile. We need quickly noticeable relief in energy costs and bureaucracy in Germany.”