3 Jul 2025
Consumption increases in May on 'surge' in downstream tire manufacturing...
Kuala Lumpur – The Association of Natural Rubber Producing Countries (ANRPC) expects natural rubber (NR) production to increase modestly by 0.5% year-on-year in 2025 to reach 14.892 million tonnes.
The forecast is slightly lower than an earlier estimate of 14.897 million tonnes issued in March.
The estimate reflects the influence of internal and external factors on the NR industry, such as weather patterns, limited investment in planting, and sudden shifts in market expectations, ANRPC said in its May industry review.
For the month of May, the association expects global NR production to reach 1.04 million tonnes, marking an increase of 1.27% over May 2024.
In particular, Thailand's NR production for May is projected to fall 4% year-on-year to 272,200 tonnes due to “adverse weather conditions that hindered tapping operations” in April.
In contrast, Vietnam, Cambodia and China reported month-on-month growth in production as tapping increased in the region.
On the demand side, ANRPC expects consumption to see a modest growth of 1.3% year-on-year to reach 15.565 million tonnes in 2025.
The growth coincides with rising concerns over a potential global economic slowdown, driven by US tariffs and the likelihood of diminished trade activity due to higher import prices, ANRPC explained.
In May, China's natural rubber consumption reached 619,700 tonnes, marking a month-on-month increase of 7.12%.
ANRPC linked the increase primarily to a significant rebound in downstream tire production, driven by strong growth in electric vehicle production and sales in May.
“As tire manufacturers ramp up their operations, the need for high-quality rubber has surged, reflecting a positive trend in the industry,” it said.
Thailand's natural rubber consumption reached 111,000 tonnes in April 2025 and is expected to fall to 95,500 tonnes in May.
Malaysia’s consumption is expected to reach 20,600 tonnes in May, up from 19,400 tonnes in April, said the monthly report.
According to ANRPC, the month of May saw a resurgence in downstream tire production, significantly boosting demand for NR.
“The market for natural rubber raw materials is stabilising at elevated levels, ensuring continued support for rubber prices,” it added.
However, the current high domestic inventory poses challenges, negatively affecting market conditions, ANRPC warned.
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