Chinese tire exports support demand for natural rubber
Prices for natural rubber and latex rose further, driven by demand from the tire industry in China, higher oil prices, and a still-limited supply due to seasonal factors. However, the decline in global automobile production and high inventory levels continue to send mixed signals about demand.
Limited supply due to seasonal factors maintains downward pressure on prices
Rainfall in producing areas of China is delaying deliveries, while Thailand is showing some production recovery. However, global supply remains tight, and more significant downward pressure may not appear until June with the start of the peak production season.
The conflict between the United States and Iran continues to impact the energy market
Negotiations remain stalled, and the Strait of Hormuz remains closed, restricting oil exports and supporting crude oil and synthetic rubber prices, which in turn helps to keep natural rubber prices firm.
Shipping companies push for new fare increases amid uncertainty
Rising fuel prices and longer voyage times are driving general increases in maritime fares, although current uncertainty is making it difficult for buyers to commit to long-term agreements.