For the Quarter Ending June 2025
North America
• The natural rubber spot price in North America in Q2 2025 followed a downward trajectory overall, with an average quarter-over-quarter fluctuation of about -3% in prices, reflecting consistent pressure from oversupply and muted demand; June saw prices dip significantly to around USD 1850 USD/MT before a slight uptick in July.
• In April, prices fell sharply due to weak demand from automotive, footwear, adhesives, and industrial goods sectors, compounded by trade policy-induced uncertainty and a drop in global container bookings by 49%, causing oversupply and cautious purchasing.
• May’s price drop intensified with continued oversupply, stockpiling effects reversing, and softer manufacturing activity amid a sub-50 PMI, while port improvements accelerated product flow, worsening saturation.
• June’s price dip resulted from increased Asian production entering a high-output season and easing tariffs that encouraged stock clearance at lower prices, alongside stable import logistics and declining synthetic rubber input costs, feeding into lower domestic prices.
• Natural Rubber Demand throughout Q2 was weak across major consuming sectors such as automotive and tires; buyers held back fresh procurement to manage high inventories amid economic uncertainties and trade tensions.
• Elevated inventories and cautious buyer behavior fostered expectations for prolonged subdued prices into the near term despite longer-term positive demand prospects linked to green manufacturing and renewable materials.
• The natural rubber production cost trend remained stable or slightly declined due to lower energy and input chemical prices, helping producers offset demand-side pressure to some extent.
• The Natural Rubber Demand demand outlook indicated soft industrial activity with modest PMI expansion but slower procurement, while construction and consumer goods sectors also trimmed rubber purchases responding to economic caution.
• Import dependency intensified North American sensitivity to global supply changes and pricing from Asian export hubs, making the regional price level vulnerable to external supply fluctuations and tariff-induced disruptions.
• Market participants expect limited price recovery in the short term without a revival in automotive and industrial manufacturing demand, driving fresh consumption and reducing inventories.
Asia Pacific (APAC)
• APAC natural rubber prices broadly declined in Q2 2025 with an average quarter-on-quarter drop around -4%, ending June near USD 1700 USD/MT, marking a notable decline due to increased production and sluggish downstream demand, before a minor uptick in July.
• April prices fell on expanding production in Thailand (up ~3%) aided by good weather and yields, combined with deflationary pressures and weakening industrial activity indicated by a PMI under 50.
• May saw continued price declines driven by abundant supply, weak demand from automotive and tire manufacturing sectors, and currency fluctuations that reduced competitiveness in export markets.
• June showed a mixed picture with manufacturing PMI rising to 51.7 signaling some sector expansion, but demand remained tepid, constrained by cautious downstream procurement and negative inflation trends.
• The regional natural rubber production cost trend showed mild upward pressure in June due to increased input costs after months of decline but overall remained moderate.
• The Natural Rubber Demand outlook was subdued throughout Q2 with major end-users like automotive and consumer goods sectors limiting purchases amid economic uncertainty and cautious inventory management.
• Natural Rubber Demand Export flows from Thailand and neighboring producers remained steady and well supplied, with no significant logistics disruptions, ensuring market availability but reinforcing pricing pressure.
• Inventory levels remained elevated, and buyers adopted short-term, need-based procurement strategies rather than long-term contracts amid demand weakness and global oversupply.
• The natural rubber price forecast reflects continuing softness in the near term with some potential stabilization as manufacturing sector improvements may drive modest demand recovery.
• Long-term Natural Rubber demand fundamentals remain positive due to growth in green manufacturing and sustainable material preferences, though these have been insufficient to offset current demand weakness.
Europe
• Europe experienced a downward price trend in Q2 2025 for natural rubber with an average quarter-on-quarter price fall of roughly -4.5%, reaching a low of approximately USD 1860 USD/MT in June, influenced by oversupply and muted demand, before a slight July recovery.
• April prices declined due to redirected supply flows from U.S. tariff changes, creating inventory surges at key European entry points like the Netherlands, alongside proactive stockpiling ahead of production slowdowns.
• The Euro’s appreciation against the USD boosted buying power, encouraging bulk imports that increased inventories and softened prices.
• May saw stable manufacturing but with cautious order reductions and widespread surplus stocks from Asian producers, which intensified price competition and pressured local producers to cut prices.
• Natural Rubber Demand in Europe remained weak in Q2, particularly from the automotive, pharmaceuticals, and personal care sectors, combined with a wait-and-watch purchasing approach amid expectations of further price declines.
• June featured improvement in manufacturing PMI (51.2), indicating growth, primarily export-driven, but rubber consumption demand stayed subdued, highlighting cautious procurement from automotive and tire manufacturers.
• Logistical bottlenecks eased compared to earlier months, improving shipment regularity and lowering landed costs, but competitive import pricing kept domestic margins tight.
• The natural rubber production cost trend benefited from lower upstream material prices and improved supply chain efficiency in June, easing cost pressures for manufacturers.
• Elevated inventories and ongoing price volatility pushed businesses to adjust stock levels strategically to mitigate supply disruptions and pricing risks.
• The Natural Rubber demand outlook foresees a potential gradual rebound later in the year as economic activity improves and inventories normalize, but short-term demand and prices will likely remain restrained.
For the Quarter Ending March 2025
North America
The USA natural rubber market experienced notable price fluctuations in Q1 2025, influenced by supply dynamics, global trade policies, and demand-side uncertainties. January began with a sharp price decline due to ample supply, competitive offers from Asian suppliers, and high inventory levels. Buyers held significant leverage, securing favorable Q1 contracts amid weak consumer demand and economic caution, as reflected in a 1.2% drop in retail sales.
In February, prices rebounded temporarily following supply disruptions in Malaysia caused by adverse weather, aging plantations, and labor shortages. Rising import costs and logistical challenges contributed to price increases, though subdued domestic demand limited further gains. Economic uncertainty, trade policy speculation, and preemptive inventory buildup among tire and pharmaceutical manufacturers softened purchasing activity, keeping the market’s momentum weak.
March saw prices initially decline due to stable supply and improved logistics but later experienced a slight uptick as the U.S. imposed tariffs on key trading partners, prompting accelerated procurement. Inventory buildup ahead of anticipated tariff adjustments also supported prices. By quarter-end, prices had moderated overall, reflecting a well-supplied yet cautious market. Looking ahead, Q2 2025 may see continued volatility as trade policies evolve and demand conditions remain uncertain.
Asia Pacific
In Q1 2025, Malaysia’s Natural Rubber market demonstrated a gradual upward price trend, driven by tightening supply conditions and consistent downstream demand. January began with a bearish tone as production outpaced demand, resulting in excess inventory and weaker export momentum. Although domestic consumption, particularly from the tire and pharmaceutical sectors, remained steady, the market struggled with oversupply and sluggish industrial activity, reflected by a Manufacturing PMI below 50.
However, February marked a sharp turnaround as seasonal constraints, including the dormant season and adverse El Niño-related weather, significantly reduced latex yields. Labor shortages and rising energy costs further limited production, while high export volumes to regions like Europe and the US curtailed domestic availability. This supply strain, coupled with strong demand from the automotive and medical sectors, propelled prices upward. In March, the market maintained its bullish tone, though at a more moderate pace.
A 4.2% year-on-year decline in rubber output and a 1.4% CPI increase reflected rising production costs and constrained supply. Tire and construction activity showed modest improvement, while inventory drawdowns signaled cautious market optimism. Overall, Q1 closed with a firm pricing environment, transitioning from early oversupply to supply-led price support, suggesting continued strength heading into the second quarter.
Europe
In Q1 2025, the Natural Rubber market in the Netherlands displayed notable volatility, marked by alternating periods of price drops and surges. January began with a sharp decline in prices due to an oversupplied global market, driven by high inventories and competitive offers from Asian suppliers. European buyers leveraged this situation to secure favorable Q1 contracts despite ongoing logistical challenges.
However, February witnessed a significant price rebound as adverse weather conditions, including El Niño-induced droughts and Thailand’s wintering season, constrained supply from major producers like Thailand, Indonesia, and Malaysia. Rising freight costs, port congestion, and strong demand from automotive, healthcare, and industrial sectors further intensified upward pressure on prices.
By March, the market shifted again as prices declined amid weak demand and ample inventories. Buyers showed caution, delaying new purchases while relying on existing stock. Simultaneously, ocean freight rates dropped, the Europe Peak Season Surcharge was removed, and the Euro appreciated against the U.S. Dollar—factors that collectively reduced import costs. Suppliers focused on stock clearance rather than new production, leading to downward pressure on prices. Overall, despite a brief surge in February, the quarter ended with a net downward trend in prices, driven by balanced demand, stable logistics, and strategic purchasing behavior.
For the Quarter Ending December 2024
North America
The U.S. Natural Rubber market in Q4 2024 witnessed a fluctuating yet predominantly upward price trajectory, marked by supply chain constraints, rising raw material costs, and geopolitical disruptions. In October, seasonal demand from downstream industries and elevated shipping costs from Asian suppliers drove significant price hikes. Supply chain challenges, including strikes, limited domestic production, and extended delivery times, further strained inventories. Strategic stockpiling and rising Latex prices amplified the upward trend.
November saw a temporary price correction as inventories rebounded, competitive supplier strategies aligned with holiday demand, and record-high cargo processing eased pressures. However, concerns over looming tariff increases and disrupted port operations kept the market volatile.
December brought intensified pressures due to labor disputes, logistical bottlenecks, and preemptive inventory building ahead of potential trade policy changes under the incoming administration. Despite declining manufacturing activity and subdued demand, businesses faced heightened costs and distribution challenges. Overall, Q4 reflected a fundamental shift in the U.S. Natural Rubber market’s equilibrium, with sustained price volatility fueled by structural supply chain vulnerabilities and economic uncertainty heading into 2025.
Asia Pacific
Vietnam's Natural Rubber prices demonstrated notable volatility, influenced by fluctuating supply-demand dynamics, global uncertainties, and local market adjustments. In October 2024, Natural Rubber prices in Vietnam surged due to tight supply, robust demand from the pharmaceutical industry, and seasonal procurement pressures. Limited Latex availability further intensified supply constraints, propelling prices higher in both local and global markets.
November brought a slight decline in prices as supply chain adjustments and improved weather conditions in key production regions boosted raw material availability. Rising inventories created downward pressure, while stable downstream tire production offered modest support. However, destocking efforts exacerbated oversupply, prolonging the market's bearish sentiment. Vietnam's Manufacturing PMI declined marginally to 50.8 but continued to indicate growth for the second month.
December saw a sharp rebound in Natural Rubber prices, driven by weather-related supply shortages, strong export performance, and heightened demand from automotive and manufacturing sectors. Vietnam’s record-high export values solidified its position as a key global supplier, despite external pressures such as geopolitical tensions and China's economic slowdown.
Europe
Overall Trend of Q4 2024 showcased Volatile and downward, marked by an initial surge followed by a bearish trajectory. October witnessed a sharp price increase driven by high seasonal demand from downstream sectors, escalating shipping costs from Asia, and rising fuel prices. Supply chain disruptions, limited domestic production, and prolonged delivery timelines forced traders to explore alternative logistics, while rising Latex prices amplified production costs. Strong export demand further intensified price pressures.
In November, the market reversed, entering a bearish phase due to weak demand, oversupply, and favorable production conditions. Reduced Eurozone business activity and high inventories led manufacturers to implement aggressive price cuts, reinforcing the downward trend. Spot market activity remained subdued as subdued demand persisted.
The quarter highlighted structural challenges, including reduced Chinese export volumes, blank sailings limiting logistics capacity, and robust seasonal demand. These disruptions created a seller’s market, forcing buyers to accept premium pricing. To navigate this, market participants must prioritize supply chain resilience and adjust procurement strategies to balance cost and supply security effectively amidst a rapidly shifting landscape.
For the Quarter Ending September 2024
North America
In Q3 2024, North America saw a significant rise in Natural Rubber prices, driven by increased global demand and ongoing supply chain disruptions. Factors such as rising production costs, geopolitical tensions, and natural disasters tightened the supply-demand balance across the market. Additionally, shutdowns at key production facilities reduced supply, further intensifying price dynamics.
Adverse weather in Southeast Asia, particularly heavy rainfall, slowed the rubber cutting process, limiting raw material availability and pushing prices higher. In the USA, price increases were notably steep, with heightened raw material costs, particularly for Latex, a primary component of Natural Rubber.
The US dollar’s depreciation against the Chinese yuan and higher shipping rates due to limited vessel availability added pressure to the market. As a result, the price of Natural Latex Rubber (DRC 60% H.A.) reached USD 2190/MT CFR Houston by the end of Q3. This quarter-ending figure reflects an optimistic price environment for Natural Rubber, signaling a stable outlook amid persistent demand and constrained supply conditions across North America.
Asia Pacific
In the third quarter of 2024, the Natural Rubber market in China exhibited significant volatility. July saw a notable price decline driven by various economic, geopolitical, and seasonal factors. The appreciation of the Chinese yuan against the US dollar diminished arbitrage opportunities for exporters, leading to increased domestic supply and reduced global competitiveness. Additionally, geopolitical tensions disrupted trade flows, raising freight costs and reducing demand domestically and internationally, resulting in an oversupply situation.
Seasonal shutdowns of manufacturing plants prompted inventory liquidations, particularly for heat-sensitive products, while declining raw material costs, especially for Latex, added downward pressure on prices. Conversely, August experienced a significant price surge, propelled by resilient demand from end-user sectors and strong regional and international quotations. Severe weather conditions disrupted production, further tightening supply.
The yuan's appreciation improved the competitiveness of Chinese exports, while a rebound in the Latex market saw rising prices supported by futures markets. By September, preemptive purchasing ahead of production resumption and heightened seasonal demand in the food and pharmaceutical sectors led to further price hikes, illustrating the turbulent dynamics of the Natural Rubber market throughout the quarter.
Europe
In Q3 2024, the European Natural Rubber market experienced notable price fluctuations driven by various factors. The quarter began with declining prices in July, primarily due to lower production costs in key manufacturing regions, prompting buyers to delay purchases in anticipation of further drops. This created a demand slowdown, while companies liquidated inventories to reduce storage costs, exerting additional downward pressure on prices.
However, the market dynamics shifted in August, particularly in the Netherlands, where prices surged due to increased local demand and export needs. Contributing to this volatility were supply disruptions from China, caused by higher production costs, natural disasters, and geopolitical tensions. A weaker USD further raised import costs, and rising crude oil prices added to supply chain expenses. Seasonal buying activity ahead of the Zhongyuan Festival, combined with low inventories, intensified market pressures, leading to significant price increases.
Maintenance shutdowns and escalating latex costs also impacted pricing. By the end of the quarter, the market had shown resilience, with an ending price of USD 1900/MT for Natural Latex Rubber (DRC 60% H.A.) CFR Rotterdam in the Netherlands, reflecting a strong upward trend in prices despite earlier challenges.
FAQ’s
1. What were the current natural rubber prices in North America by the end of Q2 2025?
By June 2025, natural rubber prices in North America dropped to around USD 1850 USD/MT, reflecting a 3% decline compared to the previous quarter. Prices briefly rebounded in early July, but overall market sentiment stayed weak due to oversupply and sluggish demand from automotive, footwear, and industrial sectors.
2. Who are the major producers and exporters influencing natural rubber prices?
Key global suppliers include Thailand, Indonesia, Malaysia, and Vietnam, which dominate production and exports to markets like North America and Europe. Seasonal high-yield periods in these regions, combined with currency movements and export policies, heavily influence price fluctuations worldwide.
3. What factors led to the price decline in Q2 2025?
The price drop was driven by persistent oversupply, weak demand from end-user industries such as automotive and tires, high inventories, and easing tariffs that encouraged stock clearance at discounted rates. Additionally, improved logistics and increased Asian production added further downward pressure on North American and European prices.
4. What is the outlook for natural rubber prices in the coming months?
Short-term recovery is unlikely unless demand from automotive and industrial manufacturing picks up significantly. Market analysts anticipate continued subdued prices due to elevated stock levels and cautious procurement, though long-term growth prospects remain positive, supported by rising interest in green manufacturing and sustainable materials.
