Natural Latex Price Trend and Forecast

Natural Latex Regional Price Overview

Get the latest insights on price movement and trend analysis of Natural Latex in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Natural Latex Price Trend for the Second Half of 2023

The natural latex market is primarily driven by factors such as increasing demand from end-use industries like healthcare, textiles, and automotive, where latex is used in various applications such as medical gloves, mattresses, and automotive components. On a global scale, fluctuations in crude oil prices also affect synthetic latex production costs and have a significant influence on natural latex price trends.
 

Natural Latex Price Chart

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During the third and fourth quarters, the Indian natural latex prices experienced a consistent decline due to increased imports and weak demand. Despite a slight price drop in the later months of the year, imports rose by around five percent year-on-year, while production only increased by four percent, leading to an imbalance in supply and demand.

The tire industry, a major consumer of natural latex, showed bias about overseas imports over domestic latex due to cost considerations, intensifying the pressure on the domestic producers as well as traders of natural latex. Additionally, delays in payments from the Kerala government's price stabilization fund also raised concerns of the latex farmers.

Another viewpoint of global factors, including reduced production in Thailand and increased exports from Ivory Coast, also had a significant influence on the Asian natural latex prices, with expectations of a surplus in the coming months, leading to further price declines.

Analyst Insight

According to Procurement Resource, the price of Natural Latex is estimated to continue its southward journey for the next few quarters as the rising concerns over trading challenges and slowing down of the end user industries do not present any favorable picture.
 

Natural Latex Price Trend for First Half of 2023

In the first quarter, the price trend of natural latex inclined, but the second quarter did not help in keeping this trend afloat. Initially, the automotive and tire industries improved their sales, which drove the price trend of natural latex in a positive direction. But soon, this scenario of the natural latex market changed. The rates of imports from Thailand and Malaysia in the global markets far exceeded the demand for the product, and as a result, the price trend of natural latex took a slump in both Asia-Pacific and European countries.

The overall global market dynamics of natural latex were further affected by the high costs of labor and poor return rates, especially in the Asia-Pacific region. Despite the enhanced number of sales in the tire and automotive industries, the consumption rates still remained low compared to the production rates. In addition to this, the influx of imports in Indian markets further hampered the progress of the natural latex price trend.

Analyst Insight

According to procurement resources, the price trend of Natural Latex is expected to showcase a falling trajectory as the influx of cheap imports from Asian countries will likely affect the growth of the natural latex price trend negatively.

Procurement Resource provides latest prices of Natural Latex. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.