KUALA LUMPUR, Malaysia—Natural rubber pricing experienced a marked uptick during the month of March, the Association of Natural Rubber Producing Countries reported.
The industry saw stronger pricing trends as supply tightened in key markets for block rubber, ribbed smoke sheet and latex, the Kuala Lumpur-based industry body said. While production grew 2.1 percent year-on-year to 786,000 metric tons in March, the upstream sector of the NR industry "continued to grapple with tight supply."
Seasonal leaf-fall period, increased demand in China as well as international developments impacted supply during the month, ANRPC said.
"Geopolitical factors have historically influenced supply-chains and global logistics," the association added, noting current events such as the Russia-Ukraine conflict, instability in Africa, and tensions in the Middle East.
According to ANRPC, managing supply chain risks has become progressively more complex for global companies due to conflicts around the world.
Meanwhile, it said, "escalating tariffs between major economies, and regulatory shifts such as import/export bans have disrupted access to crucial resources and markets."
Additionally, attacks on shipping routes have forced companies to seek alternative transport options, leading to logistical hurdles.
In terms of the supply outlook, ANRPC forecast production to improve by 3.4 percent on a year-to-year basis in the next month, spurred by a price-rebound observed since the start of the year.
For the full year, the association revised up its production outlook to 14.542 million tons, up 1.6 percent compared to last year and 0.1 percentage point compared to previous estimates.
This revision stems from the improved outlook in China and Myanmar throughout the year, ANRPC added.
Demand in the month of March, meanwhile, grew 1.9 percent year-on-year to 1.3 million tons, according to the ANRPC report.
Global demand for 2024 has been marginally adjusted downward from the previously reported 15.826 million tons to 15.670 million tons, reflecting a slower growth rate of 3 percent year-on-year.
The revision is attributed to a decrease in China's projected demand for 2024, which now stands at 7.352 million tons compared to the previously reported 7.500 million tons.
