KUALA LUMPUR—The Association of Natural Rubber Producing Countries (ANRPC) expects internal drivers to help strengthen natural rubber pricing, despite ongoing trade tensions globally.
In its February market review, published earlier this month, ANRPC said a tightening in NR supply could help boost rubber pricing in the near term.
Factors such as the El Niño weather pattern, aging plantations, and a shortage of skilled tappers have significantly impacted production, raising prices in February, it said.
For the month of March, the association estimated a rubber supply of 758,000 metric tons, as production was impacted by seasonal leaf shedding.
Demand for the month, meanwhile, was projected to reach 1,394.8 million tons, causing a possible supply shortfall.
External factors driving the market include the postponement of the European Union's Deforestation-free Regulation (EUDR) until December 2025 and strong demand from Chinese tire makers.
The association noted, however, that U.S. trade policies of the new Trump administration and rising trade tensions between the U.S. and China could contribute to "shifts within the market."
Furthermore, currency fluctuations, especially the unpredictability of U.S. monetary policy, could also dampen global demand, ANRPC added.
Far East NR trading exchanges have seen a continued decline in pricing over recent weeks, linked primarily to ongoing global trade tensions.
