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NATURAL RUBBER (NR) PRICES
(Regional Rubber Market Price - RRMP)
13 January 2025    RRMP 198.03 US Cents/Kg (0.85%)    14-Day Moving Average 199.83 US Cents/Kg (1.40%)
PHYSICAL SPOT PRICES
OF THAILAND, INDONESIA AND MALAYSIA (TIM)
13 January 2025    RSS3 238.84 US Cents/Kg (82.22 THB/Kg)    STR20 193.55 US Cents/Kg (66.63 THB/Kg)    SIR20 191.00 US Cents/Kg (30,931 IDR/Kg)    SMR20 196.90 US Cents/Kg (873.50 MYR/Kg)


Regional Rubber Market Price (RRMP)

US Cents/Kg
0

13 January 2025


News Updates

Heavy Rains and Flood Affecting Tapping Activities in Southern Thailand

WhatsApp Image 2024-11-28 at 15.01.48

Four provinces in Southern Thailand, namely Songkhla, Pattani, Yala and Narathiwat are experiencing heavy rain and severe floods. Many roads are forced to close as the flood keeps worsening, ravaging houses and public facilities. Water level in some areas in Hadyai, Songkhla is exceeding 1.5 meters, affecting residents as their homes are submerged. Yala is the hardest-hit province as the residents are facing the worst flooding in two decades. The Thai Meteorological Department forecasts the Southern provinces particularly in the eastern area will continue to receive heavy rains throughout the week driven by the strong northeastern monsoon. IRCo foresees the downpours and floods force the farmers and tappers to halt their tapping activities and the surging floodwaters have been affecting transportation of rubber to collection centres and factories. IRCo expects that it is most likely the rubber supply will be limited as the rains keep pouring, preventing tapping.

Source: Bangkok Post, 28 November 2024

 

Market Review for Q4 2024

The Regional Rubber Market Price (RRMP) primarily exhibited a downward trend, decreasing to the lowest price of the quarter at 194.78 US cents/kg. This negative movement was attributed to the unusual decline in prices of RSS3 and Latex, compared to the relatively stable prices of SIR20 and SMR20. The market prices began to move downward, driven by uncertainty surrounding the US election and its outcome. However, prices have since rebounded due to flooding that has impacted major natural rubber-producing regions, including Southern Thailand, Sumatra Island in Indonesia, and the Northern Peninsula of Malaysia.


Natural Rubber Market Outlook for 2024

"There is a possibility of slower demand growth, which could cause natural rubber prices to drop. However, markets strongly believe and expect the Federal Reserve to cut interest rates by the end of the year, which would support prices. As a result, the RRMP is expected to fluctuate within a moderate range."
International Rubber Consortium
22 April 2024
Key Factors Influencing the Natural Rubber Market in 2024

USD Depreciation:

         Market foresees weak USD Index due to expected lowering of FED interest is positive to stabilise other currencies.

Short-run Sluggish demand growth:

         There is a possibility for a slower demand growth due to lower Global Annual GDP Growth and tyre growth production.

Expansionary monetary policy:

         Market’s expectation of FED to cut interest gradually (0.75% to 1.00%) from 5.25% – 5.5% in 2024 will help to ease some financial pressure on the USD Debt nations.

EUDR regulations:

         EUDR regulations and sustainability initiatives raise costs for natural producers, potentially leading to short-term price increases.

IRCo Programmes and Activities



To achieve a long term price trend that is stabilised,
sustainable and remunerative to the farmers


To maintain a supply-demand balance to ensure adequate
supply of natural rubber in the market at fair prices


Focal Points