Natural Rubber Price Drops to $2035/ton

March 4, 2026, 9:18 AM

TDD-Global

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Guide

Highlights at a glance

On March 3, the Qingdao STR20 natural rubber index declined by $30 to $2035 per ton. This drop occurs as major producing regions like Thailand and Vietnam enter the seasonal low-production period, while domestic tapping in Yunnan and Hainan has ceased. Although tire manufacturers are operating at high capacity, demand is facing headwinds: domestic semi-steel tire orders have weakened, and geopolitical tensions are disrupting exports to the Middle East, causing delays and order cancellations. Market analysis indicates that while upstream costs remain firm due to rising overseas raw material prices, tire producers' profit margins are under pressure. In the short term, rubber prices are expected to experience moderate downward adjustments amid subdued trading activity and cautious procurement. This report provides key insights into supply-demand dynamics and future price trends for industry stakeholders.

Index

On March 3rd, the Qingdao STR20 natural rubber price index was $2035/ton, down $30/ton from the previous trading day.

Market Analysis
Futures Market:

Spot Market
Supply Side:
International: Except for a small amount of production remaining in southern Thailand, the main producing areas in northeastern Thailand have entered the off-season. Vietnam's producing areas have also entered the off-season.

Domestic: Tapping has ceased in Yunnan and Hainan.

Demand Side: It is understood that most tire companies have resumed production at high levels. Overall shipments at the beginning of the month were average. Due to concentrated post-holiday shipments, some companies are experiencing significant shortages, especially in the domestic market for semi-steel tires, where order fulfillment rates have decreased.

Furthermore, escalating geopolitical factors have increased export obstacles from the Middle East, with some companies reporting a temporary slowdown in exports to the region and delayed order shipments.

Futures and Spot Price Overview

Market Outlook

Today, futures prices fluctuated and weakened, with spot offers following suit. Holders had limited willingness to sell at lower prices, opting instead for small-scale replenishment of essential needs. Trading activity was subdued. Overseas raw material prices remained on an upward trend, providing strong cost support. Escalating geopolitical factors will further increase cost pressures on tire raw materials, compressing tire profit margins.

Coupled with insufficient infrastructure construction in the Middle East, declining demand, and delayed or canceled orders from the Middle East, this will significantly impact exports of all-steel and semi-steel tires. Demand has remained relatively strong, and a slight decline in rubber prices is expected in the short term.

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