Natural Rubber Market Update (March 24)
Index
On March 24th, the Qingdao STR20 natural rubber price index was $1990/ton, up $35/ton from the previous trading day.
Market Analysis
Futures Market:
Spot Market
Supply Side:
International: Raw material procurement prices in Thailand continued to rise, with a significant price difference maintained. Thailand is generally in a state of no tapping, resulting in a tight supply of raw materials. Factories have restocking needs, driving up procurement prices. Vietnam's producing areas are currently in their seasonal off-season, with small-scale trial tapping expected to begin in late March or early April, followed by large-scale tapping across the entire producing area in April.
Domestic: A small increase in production has occurred in Xishuangbanna, Yunnan, with processing plants beginning to collect small amounts of rubber. Rubber trees in Hainan are generally growing well, which is conducive to the timely progress of the tapping plan.
According to surveys, tapping in Lingshui, Wanning, and Baoting areas of Hainan will begin first at the end of March, with a few areas in Baisha and Danzhou entering trial tapping. The main producing areas will gradually begin tapping around the Qingming Festival.
On the demand side: It is understood that tire manufacturers' equipment is operating smoothly, with little short-term supply fluctuation. Currently, most companies are in the pre-implementation phase of price increases, with acceptable shipments.
Those companies implementing price increases are currently mainly fulfilling previously reserved orders, and overall inventory reduction is progressing well. Before the end of the month, overall shipment performance will continue to provide some support for company sales.
Futures and Spot Prices Overview
Market Forecast
Today's futures market saw an upward trend, with spot offers following suit. Domestic production areas have entered the tapping season, and domestically produced new rubber is gradually being released. However, high raw material prices in Thailand continue to support rubber prices from overseas costs. Escalating geopolitical events overseas have led to a rise in synthetic rubber prices, and this commodity linkage may push up natural rubber prices. The natural rubber market is expected to experience short-term strong fluctuations.
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