For the Quarter Ending June 2023
North America
During the second quarter of 2023, the North American market saw a steady decrease in the prices of Natural Rubber. The downstream automotive and tire industry performed exceptionally well during the quarter, with a 20% increase in vehicle sales in the month of June. However, Natural Rubber prices continued to decline. The North American market is mainly import-driven, with Malaysia and Thailand being the major exporters of Natural Rubber. In the first four months of 2023, Thailand exported approximately 1.6 million tons of Natural Rubber, which is an increase of 3.7% compared to the same period last year. According to the DoSM, Malaysian Natural Rubber production in May 2023 grew by 6.8%, reaching 25 kilotons. According to the ANRPC (Association of Natural Rubber Producing Countries), the monthly output of exporting countries such as Malaysia and Thailand remained above their monthly consumption, decreasing the price of imported material to the USA. As a result, Natural Rubber prices in North America continued to decline amid increased supply of Natural Rubber and overflowing inventories.
APAC
Unlike North America's market trend, Natural Rubber's prices showcased a mixed trend in the Asia-Pacific region during the 2nd quarter of the year as the Natural rubber price showcased an upsurge in April followed by a consistent decline. The downstream auto and tire industries performed very well in the quarter, with increased sales and industrial output. However, the price of Natural Rubber continued to fall in the second half of the quarter. Asian countries such as Thailand and Malaysia are the world's largest Natural Rubber producers and exporters. In the first four months of 2023, Thailand exported about 1.6 million tons of Natural Rubber, up 3.7% year-on-year. According to DoSM, Malaysia's natural rubber production increased by 6.8% in May 2023 to reach 25 thousand tons. According to ANRPC (Association of Natural Rubber Producers), monthly production in exporting countries such as Malaysia and Thailand exceeded the monthly consumption in June. As a result, Natural Rubber prices in the APAC region continued to fall due to increased Natural Rubber supplies and excess inventories. Furthermore, the import orders from North American and European regions have fallen due to the abundant availability of Natural Rubber in the country compared to its offtake.
Europe
The market trend of Natural Rubber in Europe showcased stability in the first month of Q2 2023, followed by a consistent plunge in prices. The downstream automotive & tire industry did exceptionally well during the 2nd quarter, with 20% growth in vehicle sales in June. However, prices of Natural Rubber continued to decrease. Imports mainly drive the Natural Rubber market in European countries. Malaysia and Thailand are the main exporters of natural rubber. Thailand exported approximately 1.6 MT of Natural Rubber in the first four months of 2023, which is 3.7% higher than the same period of last year. In May 2023, the DoSM reported that Malaysian Natural Rubber production increased by 6.8% to 25 Kilo tons. The monthly output of exporting countries like Malaysia and Thailand remained higher than their monthly consumption, which decreased the cost of imported materials to Europe. Natural Rubber prices continued to decrease in Europe due to an increase in natural rubber supply and overflowing inventories.
