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NATURAL RUBBER (NR) PRICES
(Regional Rubber Market Price - RRMP)
06 December 2024    RRMP 213.41 US Cents/Kg (1.01%)    14-Day Moving Average 202.07 US Cents/Kg (-0.79%)
PHYSICAL SPOT PRICES
OF THAILAND, INDONESIA AND MALAYSIA (TIM)
06 December 2024    RSS3 249.35 US Cents/Kg (85.21 THB/Kg)    STR20 207.85 US Cents/Kg (71.03 THB/Kg)    SIR20 210.40 US Cents/Kg (33,437 IDR/Kg)    SMR20 215.40 US Cents/Kg (936.50 MYR/Kg)


Regional Rubber Market Price (RRMP)

US Cents/Kg
0

6 December 2024


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 Q2 2024

The Regional Rubber Market Price (RRMP) declined in the beginning of 2Q before rising significantly from 25 April 2024. The positive movement was contributed by the unusually high prices of RSS3 and STR20 compared to SIR20 and SMR20. This increase in RRMP indicates positive sentiment since the first trading day of the year which confirmed the 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 supply chain disruptions. The significant declines in tight supply in natural rubber production in the region was due to erratic and extremely 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."
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