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(Regional Rubber Market Price - RRMP)
23 July 2024    RRMP 172.40 US Cents/Kg (-0.30 US Cents)    14-Day Moving Average 172.87 US Cents/Kg (-0.48 US Cents)
23 July 2024    RSS3 213.80 US Cents/Kg (77.09 THB/Kg) STR20 174.84 US Cents/Kg (63.04 THB/Kg)    SIR20 162.30 US Cents/Kg (26,338/span> IDR/Kg)    SMR20 166.10 US Cents/Kg (765.50 MYR/Kg )

Regional Rubber Market Price (RRMP)

US Cents/Kg

23 July 2024

Market Review for Q1 2024

The Average Regional Rubber Market Price (RRMP) has risen significantly, driven by the unusually high prices of RSS3 and STR20 compared to SIR20 and SMR20. This increase in RRMP indicates positive sentiment and an upward trend in the natural rubber market in TIM (Thailand, Malaysia, and Indonesia), the main global producers. The rise is caused by concerns over tight supply and significant declines in natural rubber production in the region due to erratic and extremely hot weather conditions.

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, approximately between 160 and 190 US cents per kilogram."
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