natural rubber Pricing Assessment

  • Commodity Pricing

Markets Covered: 

vnVietnam
thThailand
cnChina
inIndia
idIndonesia
usUnited States
myMalaysia
nlNetherlands
brBrazil

Natural Rubber Price Trend, Analysis and Forecast

In Q1 2024, the global Natural Rubber market experienced a bullish trend, largely driven by rising demand from key sectors like automotive, manufacturing, and consumer goods. In Thailand, Natural Rubber prices were reported at USD 1,577.5/MT in January and USD 1,730.8/MT in February, marking a notable 10% increase from the previous month. This surge in prices was fueled by heightened activity in the construction sector and increased demand for Natural Rubber in various applications, including tires, footwear, and adhesives. The Lunar New Year also contributed to the demand for packaging materials, leading to a spike in production and distribution, further boosting Natural Rubber usage.

In Q2 2024, Natural Rubber prices in Thailand rose to USD 1,917.6/MT, reflecting a 10% increase from Q1. This rise was driven by strong demand for Natural Rubber in applications such as automotive tires, medical gloves, and industrial products. The surge in production of these goods, coupled with logistical challenges and rising freight rates, put upward pressure on prices. Additionally, supply chain disruptions and factory closures contributed to the tightening of available Natural Rubber, further supporting the price increase.

By early Q3 2024, the Natural Rubber market shifted to a more bearish trend, with prices reported at USD 1,764/MT in July, indicating a decrease of 9% from June in Q2. This downturn was attributed to limited demand from key sectors and abundant global supply, leading to a market adjustment. The easing of supply chain issues and improved production capabilities allowed for better inventory levels, contributing to the price reduction. Moreover, seasonal factors and reduced consumer demand in some regions played a role in softening prices.

Looking ahead to Q4 2024, the Natural Rubber market is expected to experience fluctuating dynamics. As the festive season approaches, increased demand for Natural Rubber in packaging and automotive applications could drive prices up again. Additionally, potential supply chain challenges, such as geopolitical tensions and weather-related disruptions, could impact market conditions. The ongoing focus on sustainable practices and advancements in production technologies may also influence future pricing and supply availability in the Natural Rubber market. Overall, procurement teams should remain vigilant and adaptive to these changing market conditions as they plan for the upcoming quarter.

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is your trusted resource for tracking global natural rubber price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the natural rubber market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

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Track 's natural rubber price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in natural rubber prices

  • China’s Economic Slowdown (2023-2024): A slowdown in China’s economy led to reduced demand for Natural Rubber, particularly in the automotive and manufacturing sectors, causing downward pressure on prices.
  • Southeast Asia Droughts (2022): Severe droughts in Thailand and Malaysia, major producers of Natural Rubber, reduced latex output, leading to a temporary supply shortage and increased prices globally.
  • COVID-19 Pandemic (2020-2021): Natural Rubber prices initially dropped due to reduced demand in industries like automotive, but as demand for medical gloves and packaging materials surged, prices rebounded sharply.
  • Thailand’s Export Restrictions (2019): To stabilize falling prices, Thailand, one of the largest producers of Natural Rubber, introduced export restrictions, leading to reduced global supply and a price increase.
  • El Niño Weather Event (2016): The El Niño phenomenon caused extreme weather conditions in Southeast Asia, impacting latex yields and reducing supply, which led to a significant spike in Natural Rubber prices.
  • China’s Stockpile Management (2015): China, a major consumer of Natural Rubber, adjusted its stockpile strategies in 2015, purchasing large quantities to build reserves. This increased demand, temporarily raising global prices.

These events highlight the sensitivity of the Natural Rubber market to environmental factors, geopolitical tensions, and shifts in demand, underscoring the importance of constant monitoring for procurement strategies.

Methodology and Specifications

natural rubber Pricing Assessment Research Methodology

Data Collection and Sources

  • Real-Time Market Data: PriceWatch gathers real-time pricing data for Natural Rubber from a variety of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures our pricing assessments reflect the latest market conditions.
  • On-the-Ground Intelligence: Our team gathers insights directly from key market players such as producers, suppliers, traders, and end-users across major Natural Rubber production hubs. This hands-on intelligence is critical for understanding localized market dynamics.
  • Supply Chain Monitoring: We closely monitor the entire Natural Rubber supply chain, from rubber plantations to processing, production, and distribution. This includes tracking feedstock supply, production capacities, and logistics, providing a comprehensive view of the supply landscape.

Event Tracking and Impact Analysis

  • Geopolitical Developments: PriceWatch continuously tracks geopolitical factors, such as trade disputes or changes in government policies, which can significantly affect Natural Rubber prices. For example, export restrictions or tariff changes in major producing countries like Thailand, Indonesia, or Malaysia may impact global supply and pricing.
  • Climate and Environmental Events: Natural Rubber production is highly sensitive to climate conditions. We assess the impact of weather events such as heavy rains, droughts, or disease outbreaks in plantations (e.g., leaf blight), which can disrupt supply and lead to price fluctuations. Our forecasts take these environmental factors into account.
  • Economic Factors: PriceWatch analyzes global economic conditions, including growth trends, inflation rates, and demand from key industries like automotive and construction. These macroeconomic trends help us predict shifts in Natural Rubber demand and pricing.

Production Capacity and Supply Analysis

  • Current Production Monitoring: We maintain a detailed database of global Natural Rubber production facilities, including plantations and processing units, tracking their operational status, seasonal production variations, and output levels. This allows us to provide an accurate picture of current supply availability.
  • Future Capacity Projections: Our research includes forecasts of upcoming production capacities, considering new plantations, expansion of existing processing units, and advancements in harvesting technologies. This helps anticipate future supply trends and price stability.

Demand Forecasting

  • Sectoral Demand Analysis: PriceWatch offers in-depth analysis of demand across major sectors such as automotive (for tires), healthcare (for medical gloves), and industrial applications. We track annual demand growth and project future consumption trends based on industry developments and economic indicators.
  • Global Demand Dynamics: Our methodology includes regional demand variations, such as increased demand from emerging markets or shifts in manufacturing bases. This regional analysis helps explain how changes in demand can influence global Natural Rubber prices.

Pricing Model Development

  • Dynamic Pricing Models: PriceWatch uses advanced econometric models to forecast Natural Rubber prices. These models incorporate real-time data, historical trends, and projected market conditions. We continually refine these models to ensure accuracy and reliability.
  • Scenario Analysis: We conduct scenario-based assessments to explore different future market conditions. These scenarios include best-case, worst-case, and most-likely outcomes, helping clients prepare for various price movements and market changes.

Reporting and Client Support

  • Comprehensive Reports: Our clients receive detailed reports containing current Natural Rubber price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to provide clear, actionable insights.
  • Ongoing Support: PriceWatch provides continuous updates and personalized client support. Our team is always available to discuss specific market developments, offer tailored advice, and ensure clients have the most up-to-date information for decision-making.

This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Natural Rubber pricing assessments, enabling our clients to stay ahead of market trends and make well-informed business decisions.

Specifications

Molecular Weight[g/mol]

CAS No

9006-04-6

HS Code

400110

Molecular Formula

(C5H8) n

natural rubber

Natural Rubber is a flexible, durable material made from the latex of rubber trees, primarily found in tropical regions. It is widely used in tires, industrial products, and medical items due to its excellent elasticity, strength, and resistance to wear and tear. Its natural origin and versatility make it a popular choice for a variety of applications where performance and resilience are key.

Packaging Type

Drum/IBCs/Flexi tanks (Latex), Bales/Bags (TSR and RSS)

Grades Covered

Bulk Latex 60%DRC, RSS Bale 3, TSR (ISNR 20, SMR 20, SMR10, SMR5, SMR CV, STR20, SIR 20).

Incoterms Used

CIF Houston (Thailand, Vietnam), CIF Rotterdam (Malaysia, Thailand, Vietnam), CIF Santos (Thailand, Vietnam), CIF Shanghai (Thailand, Vietnam), Ex-Kottayam, Ex-South India, Ex West India, FOB Jakarta, FOB Saigon, FOB Bangkok, FOB Johor.

Synonym

Latex

Quotation Terms:

25-28 MT

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Grade TECHNICAL SPECIFICATIONS 
  Dry Rubber Content (DRC 60%) HIGH AMMONIA AND LOW AMMONIA CONCENTRATED LATEX High Ammonia Low Ammonia
Total solids content %, minimum 61.5 61.5
Dry rubber content %, minimum 60 60
Non-rubber solids %, maximum 2 2
Ammonia, % on latex 0.6 0.29
Minimum Maximum Maximum
Mechanical stability, s, minimum 650 650
Coagulum content %, maximum 0.05 0.05
Copper, ppm, maximum 8 8
Manganese, ppm, maximum 8 8
Sludge content %, maximum 0.1 0.1

 

RSS 3 TECHNICAL SPECIFICATIONS 
Oxidised spots No
Burnt sheets No
Opaque sheets No
Resinous matter (rust) Less than 10% of sample
Mould/Dry mould Slight on Wrapper and Bale surface and Interior
Blisters Less than 10% of sample
Bubbles Small bubbles
Translucent stains
Under cured
Over smoked
Blemishes
Specks Slight specks of bark

 

TSR 5 10 20 10CV 20CV CV60 CV50 SIR 20
Raw Material Coagulum Coagulum Coagulum Coagulum Coagulum Field latex Field latex Coagulum
Dirt Content % max 0.05 0.08 0.16 0.08 0.16 0.02 0.02 0.2
Ash Content % max 0.6 0.75 1 0.75 1 0.5 0.5 1
Volatile Matter % max 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8
Nitrogen Content % max 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Initial Wallace Plasticity (Po) min 30 30 30 30 30 30
Plasticity Retention Index (PRI) min 60 50 40 50 40 60 50 50
Colour Index Lovibond max
Mooney Viscosity ML 60 +/- 5 60 +/- 5 60 +/- 5 50 +/- 5

Applications

Natural Rubber is widely used as a feedstock in the production of various products across different industries. It is primarily used to manufacture tyres, where its durability and elasticity are essential. Additionally, Natural Rubber is used in making rubber gloves, gaskets, seals, and medical devices due to its flexibility and resistance to wear and tear. It also plays a crucial role in producing various types of industrial and consumer goods, such as conveyor belts and footwear. Its versatility makes it a key material in many applications requiring strength, resilience, and flexibility.

Disclaimer

Natural Rubber price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for natural rubber. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What Factors Influence Natural Rubber Prices in The Global Market? +

The price of Natural Rubber is influenced by several factors, including the supply of raw materials from major producing countries such as Thailand, Indonesia, and Malaysia. Fluctuations in demand from key industries like automotive, changes in weather conditions affecting rubber plantations, and geopolitical events also play a crucial role. Additionally, transportation costs, currency exchange rates, and government export policies can impact pricing trends for Natural Rubber.

How Do Changes in Weather Conditions Affect the Pricing of Natural Rubber? +

Natural Rubber production is highly sensitive to weather conditions. Heavy rainfall, droughts, or disease outbreaks in major producing regions can reduce latex yield, leading to lower supply and higher prices. Conversely, favourable weather conditions typically result in higher production, which can lead to price stabilization or reductions. Procurement heads should monitor weather patterns closely to anticipate potential price fluctuations.

What Are the Regional Price Differences for Natural Rubber, And How Do They Impact Procurement Strategies? +

Natural Rubber prices can vary significantly across regions due to differences in production capacities, export policies, and transportation costs. Southeast Asia, being the largest producer, generally offers more competitive prices compared to other regions like Europe or North America. Procurement teams should consider sourcing from regions where prices are lower and account for logistics costs, tariffs, and local market conditions to optimize procurement strategies.

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