Natural Rubber Prices

Natural Rubber Prices December 2023 

The natural rubber prices in the United States for Q4 2023 reached 1765 USD/MT in December. The market benefited from strong demand linked to Asian markets, leading to an uptick in prices. The logistics sector faced challenges like increased shipping costs and port congestion, affecting delivery timelines and market stability.

The price trend for natural rubber in China for Q4 2023, reached 1325 USD/MT in December. The market was driven by economic growth and consumer spending, despite disruptions in raw material production due to adverse weather. Inventory adjustments in key trade zones and year-end destocking were strategic responses to prepare for the upcoming fiscal period.

The price trend for natural rubber in Netherlands for Q4 2023 settled at 1165 USD/MT in December. The country saw a sustained rise in natural rubber prices supported by domestic demand. However, logistical challenges and global geopolitical tensions influenced market conditions, leading to increased costs and strategic stock adjustments by businesses as the quarter ended.

Regional Coverage

The report provides a detailed analysis of the market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of FOB and CIF prices, as well as the key factors influencing the natural rubber price trend.

Global Natural Rubber Price

The report offers a holistic view of the global natural rubber pricing trends in the form of natural rubber price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price levels but also provides insights into natural rubber historical price, enabling stakeholders to understand past fluctuations and their underlying causes. The report also delves into natural rubber price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed natural rubber demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Natural Rubber Price

The market followed an upward trend in late 2023, although it experienced some fluctuations due to inflationary pressures and increased input costs. In the Netherlands, consistent domestic demand helped sustain price increases, but broader European market conditions were affected by global logistics issues, including disruptions in the Red Sea impacting the transportation of goods through the Suez Canal. These challenges led to increased logistical costs and delayed deliveries. As the quarter concluded, businesses adjusted their strategies by destocking to prepare for the expected rise in demand in the subsequent months, reflecting a strategic response to the prevailing market conditions.

Detailed price information for natural rubber can also be provided for an extensive list of European countries.

North America Natural Rubber Price

The market exhibited a positive trend, influenced by increased demand notably from Asian markets, which spurred a rise in natural rubber prices early in the fourth quarter. This increase in prices was countered by early price increases by downstream businesses especially as they anticipated the winter demand. In addition, the obstacles like ports’ congestion, lack of containers, and the rise in shipping costs because of political tensions and disruptions in the key sea channels including Suez Canal added to the difficulties, elevating costs.

Specific natural rubber historical data within the United States and Canada can also be provided.

Middle East and Africa Natural Rubber Price 

The report explores the natural rubber pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

Region-wise data and information on specific countries within these regions can also be provided.

Asia Pacific Natural Rubber Price 

The market saw prices climbing during October to December 2023, driven by high demand from the tire industry and supply-side issues like intermittent rainfall affecting rubber production in Thailand and Vietnam. Additionally, the weaking of the Chinese Renminbi against the US Dollar made imports pricier, escalating costs further. However, market dynamics in China showed a strong trading environment, despite some year-end price drops due to destocking efforts aimed at clearing space for new inventories. The combined effect of these demand and supply dynamics resulted in a notable increase in natural rubber prices across the region.

This natural rubber price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Natural Rubber Price 

The analysis of natural rubber prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, agricultural output, and trade frameworks.

This comprehensive review can be extended to include specific countries within Latin America.

Natural Rubber Price Trend, Market Analysis, and News

IMARC's latest publication, “Natural Rubber Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2024 Edition,” presents a detailed examination of the natural rubber market, providing insights into both global and regional trends that are shaping prices. This report delves into the spot price of natural rubber at major ports and analyzes the composition of prices, including FOB and CIF terms. It also presents a detailed natural rubber price trend analysis by region, covering North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The factors affecting natural rubber pricing, such as the dynamics of supply and demand, geopolitical influences, and sector-specific developments, are thoroughly explored. This comprehensive report helps stakeholders stay informed with the latest market news, regulatory updates, and technological progress, facilitating informed strategic decision-making and forecasting.

Natural Rubber Market Analysis 

The global natural rubber industry size reached US$ 17.4 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 27.8 Billion, at a projected CAGR of 5.30% during 2023-2032.

• The global natural rubber market is primarily driven by the rapidly growing automotive sector. With the gradual shift towards electric vehicles (EVs) and the continued growth of the automotive industry there is a steady increase in the consumption of tires which are one of the largest end-use applications of the natural rubber.
• For instance, according to the Indian Brand Equity Foundation (IBEF), India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles.
• As countries worldwide are implementing stricter regulations on vehicle emissions and fuel efficiency standards manufacturers nowadays are increasingly opting for the tires with higher natural rubber content due to their superior performance and eco friendliness as compared to synthetic rubber alternatives.
• The growing middle-class population in the emerging economies particularly in Asia-Pacific regions like China and India is driving the demand for automobiles further stimulating the global natural rubber market.
• The construction industry is also driving the natural rubber market. For instance, according to market reports, the construction industry entered 2023 marked by a 7% increase in nominal value added and a 6% increase in nominal gross output compared to the previous year. As of the third quarter of 2023, nominal construction spending maintained a steady upward path.
• Rubber products, such as hoses, seals and gaskets are extensively used in construction applications for their enhanced flexibility, durability, and resistance to weathering. As global infrastructure development projects continue to rise, mainly in urban areas and developing countries, the demand for rubber-based construction materials is expected to increase.
• The increasing focus on sustainable building practices and green infrastructure is stimulating the use of natural rubber, which is renewable, and biodegradable as compared to synthetic rubber alternatives. This trend is further stimulated by the government initiatives promoting environmentally friendly construction material and renewable resources.
• The growing healthcare industry is also driving the natural rubber market. Natural rubber latex is extensively used in the manufacturing of medical gloves, catheters, and other medical devices due to its excellent durability, elasticity and bio compatibility.

Natural Rubber News

The report covers the latest developments, updates, and trends impacting the global natural rubber industry, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, technological innovations, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the natural rubber price trend.

Latest developments in the natural rubber industry:

• In June 2023, Pirelli signed an agreement to acquire 100% of Hevea-Tec, the biggest independent processor of natural rubber in Brazil, for an Enterprise Value of around 21 million euros. With this acquisition, Pirelli plans to increase Hevea-Tec's production volumes and launch innovative projects focused on non-fossil-based materials for tires.
• In February 2024, the Indian government increased funding for the sustainable development of the natural rubber sector by 23%, raising the allocation from ₹576.41 crore to ₹708.69 crore for the financial years 2024-26. The rate of assistance for growers has also increased from ₹25,000 to ₹40,000 per hectare to cover rising production costs. In traditional rubber-producing states like Kerala, Karnataka, and Tamil Nadu, 12,000 hectares will be cultivated, while 3,752 hectares in non-traditional areas such as Andhra Pradesh and Odisha will also see rubber cultivation.

Product Description

Natural rubber, which is scientifically known as latex is a versatile and renewable elastomer. It is derived from the sap of Hevea brasiliensis tree, which is generally known as the rubber tree. The milky white liquid is harvested through a process called tapping where the shallow incisions are made in the bark of the tree allowing the latex to flow into the collection cups. Upon exposure to the air the latex undergoes a natural process called coagulation which results in the formation of solid rubber. Natural rubber exhibits remarkable properties such as resilience, high elasticity and tear resistance making it an indispensable raw material in various industries all across the world. It is extensively used in the manufacturing of automotive parts, conveyor belts, medical gloves, tires, footwear and other ranges of consumer goods.

Report Coverage

Key Benefits for Stakeholders: 

• IMARC’s report presents a detailed analysis of natural rubber pricing, covering global and regional trends, spot prices at key ports, and a breakdown of FOB and CIF prices.
• The study examines factors affecting natural rubber price trend, including input costs, supply-demand shifts, and geopolitical impacts, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The natural rubber price charts ensure our clients remain at the forefront of the industry.