Natural Rubber (TSR) Prices: During the second quarter of 2023

For the Quarter Ending June 2023

North America

In the second quarter of 2023, the North American natural rubber market witnessed a consistent decline in prices. Despite the thriving downstream automotive and tire industry, which experienced a remarkable 20% surge in vehicle sales in June, the prices of natural rubber continued their descent. North America predominantly relies on imports, with major exporters like Malaysia and Thailand driving the market. During the first four months of 2023, Thailand’s natural rubber exports reached around 1.6 million tons, reflecting a 3.7% increase compared to the same period in the previous year. As reported by the Department of Statistics Malaysia (DoSM), natural rubber production in Malaysia climbed by 6.8% in May 2023, reaching 25 kilotons. According to the Association of Natural Rubber Producing Countries (ANRPC), countries such as Malaysia and Thailand maintained monthly production levels that exceeded their consumption, resulting in lower imported material costs for the USA. Consequently, the continued influx of natural rubber supply and surging inventories led to the sustained decline of natural rubber prices in North America.

Asia Pacific

Contrasting North America’s market trend, the Asia-Pacific region observed a diverse pattern in natural rubber prices during the second quarter. After experiencing an upsurge in April, the price of natural rubber steadily declined. The downstream auto and tire industries in the APAC region thrived during the quarter, with robust sales and increased industrial output. However, the price of natural rubber experienced a downward trajectory in the latter part of the quarter. Leading natural rubber producers and exporters like Thailand and Malaysia significantly contribute to the industry. Thailand’s exports of approximately 1.6 million tons of natural rubber in the initial four months of 2023 marked a 3.7% year-on-year increase. The DoSM reported a 6.8% growth in Malaysia’s natural rubber production in May 2023, reaching 25 thousand tons. ANRPC indicated that exporting countries like Malaysia and Thailand sustained monthly production levels surpassing consumption. This oversupply led to the continuation of falling natural rubber prices in the APAC region. Furthermore, due to the abundant domestic availability of natural rubber, import orders from North American and European regions declined.

Europe

In the early months of Q2 2023, the European natural rubber market maintained stability, followed by a consistent downward price trend. Despite the flourishing downstream automotive and tire industry, which boasted a remarkable 20% increase in vehicle sales in June, natural rubber prices persisted in their decline. Import-driven, European countries rely significantly on natural rubber exports from Malaysia and Thailand. Thailand’s natural rubber exports in the initial four months of 2023 amounted to approximately 1.6 million tons, marking a 3.7% rise from the previous year. Malaysia’s natural rubber production, as reported by the DoSM, surged by 6.8% in May 2023, reaching 25 kilotons. Monthly production from exporting countries, including Malaysia and Thailand, continued to surpass consumption, effectively lowering the cost of imported materials for Europe. As a result, natural rubber prices in Europe remained on a downward trajectory, driven by increased natural rubber supply and burgeoning inventories.

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