Prices for natural rubber may begin to decline in the coming years

Reducing the production of natural rubber and strong winter rains in Thailand will lead to an increase in natural rubber prices in the next two quarters of 2017, before the market again sees an excessive supply of this raw material. This was stated by the consultant and analyst of Rubber Forecasts, Dr. Hidde Smit (Hidde Smit) during his February speech at the Tire Technology Expo in Hanover.

Farmers in Thailand, which is the largest supplier of natural rubber to the world market, will need time to rebuild their business after the harsh winter and return to the former volume of raw materials.

In light of the growing demand and slowdown in production, the expert predicts that prices for natural rubber will remain at $ 2.45 / kg in the near future, and only then they will begin to decline, as Thailand will return to previous volumes of raw materials. The market is again waiting for an excessive supply of natural rubber, says Hidde Smith.

According to Smith, natural rubber prices will decline slightly in the next few years, and then recover when the peak of excess production is passed, and by the end of the 2020s the cost of raw materials can reach $ 3 / kg.