Firm prices, tight supply and mixed signals from China: key developments in the rubber market this week

Latex prices continue to rise
Latex prices remain on an upward trend, supported by limited supply and elevated oil prices, while natural rubber continues to trade at historically high levels. 

Heat wave in Thailand affects production activity
A heat wave is slowing tapping activity in Thailand and may affect raw material availability through the end of April, reinforcing the short-term tight supply scenario. 

Malaysia deepens its production decline
Natural rubber production in Malaysia fell 39.7% year-on-year, confirming the persistence of structural constraints affecting regional supply. 

China shows growth, but with signs of demand caution
Economic growth continues to be driven by infrastructure investment, although domestic consumption and vehicle sales — which declined 17% during the quarter — point to a more moderate outlook for rubber demand. 

The Ormuz situation continues to pressure logistics costs
Recent restrictions in the Strait of Hormuz reduced fuel availability and limited shipping capacity, contributing to the increase in freight rates observed in recent weeks.