KUALA LUMPUR—Natural rubber prices are not expected to make a noticeable recovery in the short term despite rising demand from the U.S., Europe and India, according to the Association of Natural Rubber Producing Countries.
The disrupted global logistics, abnormally high freight cost, shortage of chip semi-conductors, continuing COVID-19 infections, and poor vaccination rates are likely to continue deterring the demand sector, ANRPC said in its bi-weekly analysis of NR trends June 5.
Soft demand by China and the rest of the world also is expected to offset the stronger recovery anticipated in the U.S., Europe and India, the report noted.
Furthermore, the demand for NR latex from the glove manufacturing industry is likely to remain weak on "moderating demand and falling prices of rubber gloves."
Also influencing NR latex prices is a recent movement control order imposed by Malaysia on the Klang Valley region, which will affect about 60 percent of gloves manufacturers in the country.
In addition, with the end of the wintering season across all producing countries, NR supply is set for growth in the month of July, weighing on the prices. According to ANRPC, the world supply is expected to rise 11.3 percent month-on-month to 1.1 million metric tons in July.