Global Natural Rubber Shortfall Looms in 2025 on High Output

Global natural rubber production is expected to fall short of consumption for the fifth consecutive year in 2025, as higher prices fail to encourage tapping in major producing countries such as Indonesia and Vietnam, a senior industry official said.

- Reuters

KUALA LUMPUR:

"Demand has been consistently growing in countries such as China, India and Thailand, but production is lagging because of lower prices, which rose only last year," Lekshmi Nair, senior economist of the Association of Natural Rubber Producing Countries (ANRPC) told Reuters on Wednesday.

This production shortfall is likely to sustain firm global prices, which reached a 13-year high in late 2024, and consequently increase production costs for tyre companies.