Rubber Prices – Historical Graph

Real-time chart of historical daily rubber prices. The prices are shown in kilogram.
The current price is and is last updated on .
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  • The average price in the past 365 days is

Rubber Prices Explained

Rubber prices registered increased gain in the North American and European markets as demand from end-user industries crowded the region. On the other hand, the Asia Pacific market posted declining trends as the strengthening Chinese yuan diminished opportunities for exporters.

Rising production costs, geopolitical tensions, and higher shipping rates due to limited vessel availability supported soaring rubber prices in North American markets. Additionally, plant shutdowns intensified latex prices (a primary component of natural rubber).

Surging local and export needs in Europe created price fluctuations in the market. Also, supply disruptions from China contributed to its increased value. 

In Asia, the appreciation of Chinese yuan against the U.S. dollar reduced purchasing security for exporters drove downward pressure on rubber prices. Additionally, declining raw material costs made manufacturing easier, supporting its modest trends. However, preemptive purchasing ahead of production resumption and a seasonal demand from the food and pharmaceutical sectors will revive the commodity’s value. 

Why are rubber prices fluctuating?

1. Weather Conditions

Most of the rubber producers in the world come from Asia where it’s frequently visited by typhoons and temperatures getting drier.

Recently, global warming decreased Hevea trees (a tree that produces liquid sticky sap used in making rubber) productivity since adequate rainfall is scarce and weather temperatures are getting extreme. Thus, this reduces rubber production and drives market price.

2. Production Inputs

The rising cost of fuel, transportation, and labor adds to the worries of rubber producers. To maintain profitability, farmers put an additional value on their produce to keep up their productivity and livelihood.

3. EUDR Implementation

The implementation of the European Union Deforestation Regulation (EUDR) has a significant impact on rubber demand and prices in Europe. This rule aims to combat deforestation by requiring companies to ensure their products are deforestation-free.

As a result, it affects commodities linked to deforestation, including rubber. Companies must conduct thorough due diligence to trace the origins of their rubber. This led to increased operational costs and regulatory scrutiny, making it more challenging and expensive for companies to source rubber.

4. Synthetic Rubber

Technology advancements lead to synthetic rubber production as a cheaper and more sustainable option than natural rubber. Often, the availability and price of synthetic rubber decide the market price of natural rubber.

5. Lack of Government Subsidies

The government’s shift to industrial investment put the agriculture sector’s production low specifically in countries with emerging economies. As a result, this short fund adds to the burden of farmers to keep up with the global demand.

Which variables impact the price of rubber?

  • Weather Conditions
  • Production Inputs
  • EUDR Implementation
  • Synthetic Rubber
  • Lack of Government Subsidies
  • Currency Exchange Rates

Where does rubber come from?

Rubber comes from latex, a milky, sticky liquid from rubber-producing plants. According to experts, around 20,000 plant species produce latex but only 2,500 contains rubber in their latex. Hevea brasilensis is one famous plant with rubber in its latex.

The Mesoamerican people from Mexico and Central America first used liquid rubber for medicine, ritual, and painting. Additionally, Native Haitians played football using balls made of rubber and Christopher Columbus discovered rubber during his explorations in the Americas.

Furthermore, in 1839, Charles Goodyear invented a vulcanization process to harden rubber while retaining its elasticity. This started further innovations in rubber and it’s used in multiple industries such as automotive, aerospace, construction, medical, electronics, sports, and industrial machinery.

Here are some of the top applications of rubber:

1. Tires – Tires are the largest consumer of rubber, accounting for over 70% of global demand. Due to its elasticity, durability, and resistance to wear and tear, rubber is an integral part of the tire industry.

2. Hoses and belts – Rubber is important in making hoses and belts, such as garden hoses, radiator hoses, conveyor belts, and fan belts.

3. Gaskets and seals – The rubber’s elasticity and resistance to compression make it a necessary element in manufacturing gaskets and seals as it is used to create watertight and airtight connections between different components.

4. Medical applications – Medical applications such as gloves, catheters, and surgical tubing need rubber in their production.

5. Footwear – Rubber is used in soles and other components of footwear to provide cushioning, traction, and durability.

6. Sporting goods – Rubber is used in making balls, bats, and grips due to its elasticity, resilience, and tackiness.

7. Construction – Rubber is used in some construction applications such as roofing membranes, expansion joints, and vibration dampers.

Today, 70% of the global rubber value comes from its top producers such as Thailand, Indonesia, Vietnam, and Malaysia.

What is the future price of rubber?

Generally, the production of automotive tires largely constitutes the marketability of rubber. The segmented tire applications in the automobile industry will also fuel rubber prices. For example, Green Tires technology made innovative tires with wet grip, durability, and low rolling resistance, reducing fuel consumption by 5%-7%. 

Additionally, the increasing application of recycling tires gain a strong position in the market. For instance, Schwalbe Tires  (a German manufacturer of pneumatic tires for bicycles and wheelchairs)  launched Green Marathon. This product is manufactured from 100% recycled black rubber, with 70% recycled and renewable materials, like recycled steel. 

Moreover, the electric car competition among Asian and Western companies will drive a significant market for this commodity. Thus, market analysts predicted bullish rubber prices in 2030, amounting to $2.25 per kilogram.

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