Climatic and geopolitical factors that pressure the rubber market

Extreme weather, limited supply, and new strategies: the rubber market under pressure

Heavy rains in key regions of Asia are causing supply disruptions and putting pressure on international prices.

In recent days, heavy rains and flooding have affected producing areas in southwestern China, such as Guangxi, Chongqing, and Guangzhou, forcing the evacuation of more than 80,000 people. This is compounded by rainfall in northern Thailand, Vietnam, and the Philippines as a result of the southwest monsoon.
This weather phenomenon, anticipated by regional forecasts, has temporarily reduced supply and has become one of the main drivers of the recent rise in rubber and latex prices.

Natural rubber price evolution | US$/100kg

Natural latex price evolution | US$/100kg

📈 Prices are rising due to fears of lower-than-expected supply The market is reacting with increases in response to a potential shortage, even though demand remains weak.

Uncertainty over the impact of weather and other production factors raised concerns about a lower-than-projected supply. As a result, rubber prices rebounded in international markets. This occurs in a context where demand remains subdued, with high inventory levels and signs of an industrial slowdown in some key markets. Even so, the perception of risk in the supply chain was enough to trigger a bullish reaction.

🌐 Chinese tire manufacturers accelerate international expansion Faced with trade and tariff tensions, Chinese companies are seeking to establish plants outside the country.

In response to the changing global landscape, China's leading tire manufacturers are deepening their internationalization strategy. The goal is to avoid tariff barriers and geopolitical risks by decentralizing production. Investments in new plants in strategic markets are already being planned, which could reconfigure the global value chains for rubber and derived products. This trend reinforces the need to closely monitor the evolution of trade flows and their impact on raw material demand.

Freight, rubber, latex, supply, tariffs

Climatic and geopolitical factors that pressure the rubber market

Extreme weather, limited supply, and new strategies: the rubber market under pressure

Natural rubber price evolution | US$/100kg

Natural latex price evolution | US$/100kg

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