Natural Rubber Prices have Recently Seen a Slight Uptrend in China
Recent weather conditions have significantly impacted natural rubber production in Southeast Asia, particularly due to heavy rainfall which has disrupted the rubber tapping process in key production zones like Thailand, Vietnam, and China's Yunnan Province. In Yunnan, the seasonal leaf fall disease has further made the supply constraints worse. These disruptions have led to a noticeable increase in the purchase prices of natural rubber raw materials.
Similarly, the tire industry, a major consumer of natural rubber, has shown resilience, maintaining stable production levels. This steady demand from the tire sector, coupled with supportive domestic policies aimed at boosting automobile consumption, continues to underpin the demand for natural rubber. Despite the supply challenges, these factors have combined to cause a modest uptick in natural rubber prices.
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The natural rubber market can witness improved prices in the forthcoming months. Inventory levels are gradually diminishing, which may sustain price levels in the short term. Furthermore, a recent uptick in tire production since mid-August indicates robust demand, which should lend additional support to natural rubber prices amid rising raw material costs both domestically and internationally.
