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.