This month, the natural rubber prices experienced a bearish trend due to improving supply in key production regions, rising port inventories, and uncertainties from trade tariffs. Increased production in major producers, combined with tariff induced high level inventories, and limited demand, particularly from the tyre industry, exacerbated market challenges. The market is under significant pressure, with a cautious outlook on demand recovery. Here's a summary of the latest trends in the NR sector:
Recent reports from ANRPC member countries suggest that global natural rubber (NR) production is expected to grow modestly by 0.5% in 2025 compared to 2024. At the same time, demand for natural rubber is projected to increase by 1.3% in 2025. This anticipated moderate growth comes amid rising concerns about a potential global economic slowdown, influenced by the complexities of U.S. tariff policy, and the expected deceleration in demand growth.