ANRPC tracks impact of 'global uncertainties' on rubber prices

Kuala Lumpur – Global market uncertainties had a significant impact on natural rubber prices near the end of 2024, the Association of Natural Rubber Producing Countries’ (ANRPC) has reported.

In its latest monthly ‘NR statistical report’, for November, ANRPC said average monthly NR prices fell across the board “due to the resistance to high prices for the commodity by major consumers.”

This resistance was linked to the delayed implementation of the European Union Deforestation Regulation (EUDR), anticipated hikes in US tariffs on products from China, and a decline in crude oil prices, noted the report issued 19 Dec 2024.

These uncertainties, said the association, “engendered a ‘wait & see’ attitude among buyers, with the intention to stock up raw materials at lower cost from more competitive sellers in preparation for future’s rising demand.”

However, it added, daily NR prices rose near the end of November, with signs that an ongoing economic stimulus injection in China had improved sentiment around manufacturing-industry prospects.

ANRPC went on to forecast growth of 4.4% for the ASEAN+3 (China, Japan, Korea) region in 2025, while adding that recent interest-rate cuts signal a recovery US economy.

According to the report, global NR production registered a 2.4% year-on-year increase in November 2024 to 12.7 million tons, while global NR demand grew by 0.5% to 13.9 million tons.

“Overall, the fourth quarter of 2024 is forecast to experience a seasonal increase in supply of raw materials that partly leads to a fall in NR prices,” commented ANRPC.

The association’s outlook for global NR production remains unchanged, with an anticipated annual growth of 4.5% following a slight update on the forecast of China.

ANRPC’s global outlook for demand growth in 2024 has been revised upward by 1.4% following a revision in the ‘rest of the world’.