North America

In the third quarter of 2023, North American natural rubber prices exhibited a consistent ebb and flow. Commencing at $1345 per metric ton in July, they gradually descended to $1140 per metric ton in September, marking an average quarterly decrease of 5.77%. This decline was primarily instigated by abundant inventories and a subdued demand outlook from downstream industries, aligning with a broader trend observed in major exporting countries. The intricate dynamics of the global market, including disruptions in the supply chain and regional purchasing trends, significantly influenced this pivotal development. The successful fulfillment of the demand for natural rubber triggered a cascading effect, resulting in reduced demand and subsequent oversupply, thereby exerting downward pressure on prices. The September decrease in natural rubber prices in the USA mirrors the dynamics seen in major exporting countries. On the supply side, major rubber-exporting nations like Thailand and Malaysia grappled with an abundance of natural rubber stocks, contributing to a weakened market situation.

Asia Pacific

Throughout the third quarter of 2023, natural rubber prices in the Asia-Pacific (APAC) region consistently experienced a decline. The cost of Natural Latex Rubber (DRC 60% H.A.) FOB Bangkok (Thailand) was pegged at $1,150 per metric ton in July but tapered to the same value in September, indicating an average quarterly decrease of 2.37%. In July, an upswing in supply pressure, fueled by high inventory, coupled with relatively weak downstream demand due to hot weather, played a pivotal role in the downward trajectory of natural rubber prices. Regarding inventory, the stock of natural rubber continued to rise, surpassing the rate at which it was being sold. Concerning downstream demand, although tire companies maintained a relatively high operating rate, they failed to sufficiently counterbalance the heightened supply pressure. In mid-August, prices exhibited fluctuations and a slight increase, partly attributable to the impact of two typhoons. New rubber production continued to grow during the peak season, albeit at a somewhat reduced rate due to recent rainfall in Southeast Asia and the ongoing decline in latex prices in major rubber-producing countries. By September, prices witnessed a significant depreciation due to a substantial accumulation of domestic spot rubber inventory, compounded by the fact that it was still the off-season for car sales.

Get Real Time Prices of Natural Rubber: https://www.chemanalyst.com/Pricing-data/natural-rubber-1536

Europe

During the third quarter of 2023, the European natural rubber market witnessed significant price fluctuations, displaying consistent volatility. Prices commenced at $1245 per metric ton in July but dwindled to $1100 per metric ton for Natural Latex Rubber (DRC 60% H.A.) CFR Rotterdam (Netherlands) by September, resulting in an average quarterly decrease of 4.58%. The noteworthy price drop in July had adverse effects on consumption in the food and industrial sectors, exacerbated by a recent inflation spike. In downstream markets, all segmented sectors experienced unfavorable changes, with the global economic downturn and increased costs due to inflation leading to decreased demand. Retail sales of narrow passenger cars in July are anticipated to be 1.73 million units, reflecting an 8.6% monthly decrease and a 4.8% yearly decrease. Reduced raw material expenses have rendered the production of natural rubber more cost-effective, and these savings are being passed on to consumers. In response to oversupply, market dynamics prompted price reductions to clear existing stocks and make room for new inventory. Additionally, due to declining prices in competitive countries, there was a stronger incentive for the domestic market to lower its prices to maintain competitiveness.

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