Introduction: Rising Revenue, Falling Profits – Where Are Tire Plants Losing Money?
In the first quarter of 2026, China's tire industry delivered a mixed performance: revenue surged by 27.7% year‑on‑year, yet net profits contracted by 3.7% . The era of blind capacity expansion is over; the competition has shifted to value creation and cost discipline.
Entering the third quarter, the pressure has not eased. As of early August 2026, the theoretical profit margin for economy‑grade 12R22.5 TBR tires had dropped to ‑1.04 RMB/kg – meaning each tire sold loses money. Even PCR tires are under strain, with the theoretical profit for a mid‑tier 205/55R16 at ‑0.07 RMB/kg.
On the cost side, the situation is worsening. By August 14, 2026, the raw material cost index for TBR tires had risen 12.73% year‑on‑year. Although natural rubber prices have retreated from 18,000 RMB/ton to around 16,700 RMB/ton, they are still about 30% higher than the 2023 level of 12,000 RMB/ton and the 2025 level of 13,000 RMB/ton. Combined, the surge in just three key raw materials has pushed production costs up by roughly 12% . Synthetic rubber and additives remain elevated due to upstream petrochemical volatility.
The real profit "bleeding point" for tire plants is not raw material costs – it is hidden in every production detail. And the curing demolding stage is precisely that hidden corner where money leaks every single day.
During tire curing, the green tire is vulcanized inside a mold under high heat and pressure. After vulcanization, the finished tire must be smoothly removed from both the mold and the curing bladder. This seemingly simple step is fraught with variables.
When demolding is not smooth, the tire surface suffers defects such as filler shortages, flash, blisters, cracks, bubbles, and bead damage. Even if the tire is eventually removed, the surface may bear scratches or indentations that are irreversible – forcing it to be downgraded or sent for repair.
Every tire scrapped due to demolding issues represents not only material cost but also the electricity, labor, and equipment depreciation already invested. In an industry where profit margins are already razor‑thin, any avoidable scrap is a direct hit to the bottom line.
Traditionally, tire plants have relied on external release agents – sprayed onto the green tire surface or the mold cavity. But this approach is increasingly being abandoned.
First, external release agents are inconsistent. PCR production lines often lack dedicated spraying equipment; manual brushing or nozzle spraying is used, making dosage control difficult. Sometimes the actual amount used is more than double the optimal level, yet surface defects like blisters and cracks still appear on the sidewall.
Second, external release agents create contamination. The carbon black in spray solutions pollutes the workshop environment; the liquid soils the mold; and talc powder leaves a white residue on the tire surface, ruining appearance.
Third, they add steps and costs. External spraying requires extra labor and consumables, and the agents themselves are expensive.
More critically, environmental regulations are closing the door on external release agents.
In July 2026, the Ministry of Ecology and Environment released the draft Emission Standard for Air Pollutants in Rubber Products Industry for public comment (deadline August 14, 2026). The new standard significantly tightens emission limits, with violators facing fines, production curtailment, or even shutdown.
Meanwhile, the EU is tightening controls on hazardous substances in tires. The European Tyre & Rubber Manufacturers’ Association insists that material restrictions should fall under the REACH framework, and ECHA has already initiated an evaluation for tire additive restrictions. For tire exporters, any hazardous ingredient in additives can become a "time bomb" that blocks market access.
The old path of external release agents is being squeezed from both quality and environmental angles.
FNM‑926 Internal Lubricant & Release Agent, developed by Qingdao Fucai Rubber & Plastic New Materials Co., Ltd., is a blend of fatty acid calcium salts and amide ester waxes.
It is not sprayed onto the mold or the tire surface; instead, it is incorporated directly into the rubber compound during mixing – at any stage, though early addition is recommended for optimal release performance.
During vulcanization, FNM‑926 migrates to the rubber surface and automatically forms a uniform release film between the rubber and the metal mold. At the same time, it reduces compound viscosity, improves flowability, and enhances lubrication at the rubber‑metal interface. This dual function is why internal release agents are also called "internal lubricants" – they do more than just release; they improve processability.
In short, an external release agent is like "dressing the mold," while FNM‑926 is like "teaching the rubber not to stick" – one is external intervention, the other is internal modification. The fundamental logic is entirely different.
Advantage 1 – Addresses the root cause of demolding problems
External release agents are a "band‑aid" – uneven spraying, difficult dosage control, and unstable results. FNM‑926, being uniformly dispersed in the compound, automatically and uniformly forms a release film over the entire product surface – no blind spots, no operator error.
In chemical analysis of internal release agents, ash content is a critical indicator. Lower ash content means higher active ingredient concentration and better performance. FNM‑926 has an ash content of 4.5–5.5% , placing it in the low‑ash category with high active content.
Advantage 2 – Multiple benefits in one additive (not just release, but lubrication)
FNM‑926 does more than release – it improves processing characteristics:
Lowers compound viscosity and improves flow
Enhances plasticization and extrusion performance
Improves dimensional stability and swell stability of extruded profiles
Enhances filler dispersion and processing safety
Studies have shown that sidewall compounds containing internal release agents exhibit lower Mooney viscosity, which means better mold filling and fewer filler shortages.
One additive that simultaneously addresses release, flow, dispersion, and dimensional stability – that is the true value of FNM‑926.
Advantage 3 – Simplifies processes and reduces costs
With FNM‑926, tire plants can eliminate or significantly reduce external spraying. No dedicated spraying equipment, no extra labor, no dosage control headaches, and no environmental contamination from overspray. The entire curing process becomes simpler, more efficient, and more controllable.
Advantage 4 – Broad compatibility, especially for specialty rubbers
FNM‑926 is compatible with all natural and synthetic rubbers, and is particularly suitable for EPDM and butyl rubber (IIR). Recommended dosages:
IIR, BIIR/CIIR: 2–5 phr
IR, BR: 2–3 phr
CR: 2–4 phr
EPDM, ACM: 1–3 phr
Advantage 5 – Environmentally friendly and compliant
Since FNM‑926 is added internally, it generates no VOC emissions from spraying and does not pollute the workshop. Under tightening environmental policies, it is a strong enabler of green manufacturing.
Moreover, its composition – fatty acid calcium salts and amide ester waxes – contains no hazardous substances, helping tire manufacturers meet EU REACH and other global environmental requirements.
The effectiveness of internal release agents in tire manufacturing has been well documented. Studies show that sidewall compounds formulated with internal release agents significantly reduce sidewall filler shortages, improve appearance quality, and increase the first‑pass yield, while simplifying production and lowering overall costs.
Let's do the math.
Assume a medium‑sized tire plant produces 1 million TBR tires annually, with an average selling price of 1,500 RMB per tire – that's 1.5 billion RMB in annual revenue. If the scrap rate due to demolding issues can be reduced by just 1 percentage point – say from 2% to 1% – that means 10,000 fewer scrap tires per year, recovering 15 million RMB in direct losses.
What is the cost of FNM‑926? At the recommended dosage of 1–3 phr, the additive cost per ton of compound is only a few hundred RMB. An investment of tens of thousands of RMB can unlock millions in scrap reduction – a calculation every tire plant should seriously consider.
Beyond scrap reduction, FNM‑926 delivers additional benefits:
Higher productivity – smooth demolding stabilizes the curing cycle, improves equipment utilization, and increases output.
Better appearance quality – in a market plagued by product homogenization, surface quality is often the key differentiator for customers.
Reduced mold fouling – FNM‑926 does not build up as mold scale, keeping molds cleaner and reducing cleaning frequency. A single mold costs hundreds of thousands of RMB – extending its life is a significant hidden saving.
Improved extrudate dimensional stability – consistent semi‑finished dimensions reduce scrap in subsequent building operations.
In Q1 2026, revenue grew 27.7% but net profit shrank 3.7%. Listed companies like Prinx Chengshan (Shandong) reported a first‑half net profit decline of 18.5% . Theoretical TBR profits have already turned negative.
When margins are razor‑thin, every cost‑saving opportunity matters. Demolding‑related scrap is a chronic "hemorrhage" that happens daily – and FNM‑926 is the remedy.
The July 2026 draft emission standard for the rubber industry significantly tightens limits. Violators face fines, production restrictions, or even closure.
Traditional external release agents are a major source of VOCs. FNM‑926, being internally added, creates no spray‑related VOC emissions – it is a "plus" for compliance.
Waiting until the fine arrives is far more expensive.
The EU remains one of the largest export markets for Chinese tires. In 2025, China exported 702 million new pneumatic rubber tires, up 3.1% year‑on‑year. But the EU's green barriers are getting higher.
REACH restrictions on hazardous substances are becoming stricter. ECHA has initiated a restriction evaluation for tire additives. In July 2025, the EU imposed mandatory customs registration for certain Chinese new pneumatic tires.
Switching to FNM‑926 is like buying an "export passport" for the EU market.
The tire industry is undergoing a profound transformation. Cost pressures, environmental mandates, and export barriers are squeezing margins from all sides. In this environment, every detail that can improve efficiency and reduce waste must be re‑examined.
Demolding‑related scrap is a chronic daily loss for tire plants. The old external‑release path is no longer viable – inconsistent results, contamination, and regulatory risks. FNM‑926 Internal Lubricant & Release Agent is the targeted remedy.
With its scientifically balanced blend of fatty acid calcium salts and amide ester waxes, it works from the inside out: reducing viscosity, improving flow, enhancing lubrication, and automatically forming a release film – one additive solving four problems at once.
By leveraging this small additive, tire manufacturers can reduce scrap, increase first‑pass yield, and lower overall production costs – an investment well worth making.
The pain of "stuck" tires – FNM‑926 is the cure. Stop "forcing" it – make the switch and let your profits "release" naturally.
Qingdao Fucai Rubber & Plastic New Materials Co., Ltd. – dedicated to the R&D and production of rubber additives, providing comprehensive additive solutions for the tire industry.
(Data in this article are derived from publicly available industry reports and academic research. Actual results may vary depending on specific processing conditions; please contact our technical team for a tailored evaluation.)
