ANRPC: Current phase a “launchpad” for next rubber price rally

Kuala Lumpur – The global natural rubber (NR) market is undergoing a period of consolidation, with underlying demand continuing to outstrip supply, according to the Association of Natural Rubber Producing Countries (ANRPC).

In its December 2025 monthly NR review, ANRPC said December saw some localised price movements in US dollar-denominated markets.

However, it said, these did not reflect a weakening in underlying fundamentals.

Instead, the association pointed to currency effects – particularly the strengthening of the Thai baht – which it said have kept NR prices in local terms “fundamentally firm.”

In Thailand, domestic NR prices experienced only a marginal pullback, which ANRPC said was “minimal” compared with the perceived “slight decline” seen in US dollar terms.

That decline, it added, was largely the result of exchange-rate appreciation rather than any reduction in “intrinsic value”, with the domestic price floor remaining ‘resilient and supportive’ of a longer-term upward trend.

According to ANRPC, market strength was most clearly reflected in Malaysia, where prices rose despite “broader consolidation narratives.”

ANRPC reported that SMR-20 prices increased by 2.08% in December, while latex prices gained 2.35%.

The association said the price increases in a key producing country confirm that global demand continues to exceed supply.

ANRPC characterised current market conditions as a “healthy consolidation” rather than a bearish reversal, describing recent price movements as a “cumulation pullback” following the strong gains recorded earlier in 2025. 

This current consolidation phase, it noted, could be a “launchpad” for the next price rally.