Natural rubber prices hit by ‘fluctuating trends’ in August

Kuala Lumpur – Natural rubber (NR) markets displayed fluctuating trends in August, which generally marks the traditional peak season for the commodity.

Prices were influenced by several factors, including tight supply conditions and improving demand during the month, according to a recent report by the Association of Natural Rubber Producing Countries (ANRPC).

Seasonal factors lifted consumption, particularly in China, where declining inventories at major ports signalled firmer demand, said ANRPC secretary general Heng Guan Toh.

However, he added that rainfall and labour shortages in producing regions curtailed tapping activities, further tightening supply.

Citing recent updates from member countries, the ANRPC reaffirmed its full-year projections: global NR production is expected to edge up 0.5% year-on-year to 14.89 million tonnes in 2025.

Demand, meanwhile, is projected to grow 1.3% to 15.57 million tonnes, up from 15.36 million tonnes a year earlier.

According to ANRPC, the market sentiment became “increasingly optimistic” in August, as purchasing interest grew, particularly for all-steel tires and heavy-duty trucks.

Based on data from member states, the association said, global NR production in August totalled 1.38 million tonnes, representing a month-on-month decline of 0.75%.

This trend, it noted, reflects “erratic weather across producing regions [which] resulted in a tighter supply of NR.”

Thailand’s NR output reached 458,800 tonnes during the month, down 0.43% from July’s 460,800 tonnes.

Meanwhile, Malaysia’s production was impacted by heavy rainfall and reduced tapping activity.

Despite these challenges, steady raw material prices and a slight rebound in tire manufacturing helped support market sentiment.

On the demand side, China’s tire industry “demonstrated resilience,” underpinned by a surge in vehicle sales that “significantly heightened NR demand,” the association reported.

The ANRPC noted that, despite ongoing geopolitical and economic uncertainties, data pointed to a modest rise in consumption with “sustained growth across multiple industries.”

The automotive sector, in particular, “remains a key driver of demand,” it said.

In August, China’s NR consumption stood at 592,300 tonnes, marking steady year-on-year growth of 0.27%, though down 2.29% from July.

The fluctuation, ANRPC explained, was linked to variations in tire manufacturing activity.

Thailand’s NR consumption was estimated at 69,400 tonnes in August, up from 65,200 tonnes in July, while Malaysia’s fell to 20,700 tonnes from 22,400 tonnes reported in July.