70% of natural rubber is used for tire manufacturing, taking advantage of its elasticity and wear resistance.
Another 15% is used in the manufacturing and construction industries for products such as hoses, conveyor belts, and industrial components.
It is also used in sports footwear and other high-performance items.
China is the largest consumer of natural rubber, accounting for more than 40% of global demand. Its dominance in the automotive and tire industries is crucial: the country produces one-third of the world's cars and 35% of its tires. It is followed by India, the European Union, the United States, and Japan, where the automotive industry also drives demand.
China is not only the largest consumer, but its economy also determines rubber and latex prices. When growth is projected in the Asian giant, prices rise. If the economy slows down, demand decreases, and values drop.
This makes markets closely monitor any economic news from China, as it directly impacts global rubber prices.