Global economy is changing everyday and understanding the nuances of natural rubber production, consumption, and pricing is crucial for stakeholders across industries. This guide provides you the insightful information about the fluctuations in supply and impact of external factors like weather events and economic trends. We are going to read about the highs and lows of the prices of rubber driven by the supply concerns and weakening global demand. Read about the market forces that are driving this fluctuation and their implications for the industry players and investors alike.
Natural Rubber Market Dynamics
- Natural rubber production registered a growth of 8.3 per cent and its consumption increased 9 per cent in the 2022-23 fiscal compared with the previous fiscal.
- First half of 2023, the year started with increasing trend, primarily due to concerns about reduced supply from key producers like Thailand and Vietnam.
- In Third Quarter, Rubber prices saw a steady decline, reaching a low in September as global demand weakened and concerns about a potential recession emerged.
- The latter half of the year witnessed a gradual price recovery, driven by concerns about potential supply disruptions due to weather events in Southeast Asia. This trend was particularly relevant for rubber prices in India, a significant importer of the commodity.
Driving Forces and Growth Prospects of the Global Rubber Market
- The market is thriving due to high demand in automotive and healthcare, ongoing advancements in rubber manufacturing, and the effects of global economic growth and urbanization.
- The global rubber market is expected to grow at a compound annual growth rate (CAGR) of 4.5% between 2024 and 2032, reaching a market size of US$ 68.2 billion by 2032.
- Synthetic rubber accounts for the majority of the market share.
Conclusion
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