For the Quarter Ending September 2023
In the third quarter of 2023, the North American natural rubber market witnessed a consistent uptick in prices, primarily fueled by robust demand across various industries in the USA. The surge in demand was particularly notable in the automotive sector, spurred by a substantial 15.4% growth in domestic car sales in July, signaling a robust expansion in the automotive industry. Additionally, August witnessed a noteworthy spike in natural rubber prices in the US market, attributed to a 2% increase in US vehicle sales compared to July, along with an impressive 16.2% year-over-year growth. Despite a strike initiated by the United Auto Workers (UAW) union in September against major Detroit Three automakers, the US automotive sector achieved a remarkable total of 1.33 million units in new vehicle sales. This achievement was noteworthy, given potential supply chain disruptions due to the strike. The sustained growth in the US automotive industry was driven by factors such as enhanced availability, fleet shipments, and customer incentives, resulting in increased consumption of natural rubber. The rise in prices was also influenced by relatively expensive imports of natural rubber from South Asian countries.
In the third quarter of 2023, the Asia-Pacific region experienced fluctuations in natural rubber prices, with Malaysia being a focal point. The surge in July was propelled by increased orders from global markets, including the USA, Europe, and various Asian countries, leading to a supply-demand imbalance and subsequent price boost. August witnessed a 13% increase in vehicle sales in Malaysia, attributed to improved industry performance, supply chain conditions, and promotional campaigns. Several Asian countries relying on Malaysia for natural rubber imports also observed growth in automobile sales. Although natural rubber prices remained stable in August due to a production and consumption balance from July, prices rose in September due to escalating crude oil prices, increasing production costs and the market price of synthetic rubber. This prompted businesses to opt for natural rubber in their manufacturing processes, driving up demand. Geopolitical tensions and Federal Reserve interest rate hikes in August led to uncertainty in the natural rubber market, but resilience prevailed in the latter half of August as optimism regarding the economic outlook and market sentiment improved, causing a surge in natural rubber prices in September.
Get Real Time Prices of Natural Rubber (TSR): https://www.chemanalyst.com/Pricing-data/natural-rubber-1327
During the third quarter of 2023, the European natural rubber market saw consistent price increases, notably in the German market. July witnessed a surge in natural rubber prices in Germany due to heightened demand from the automotive sector. The trend continued in August, driven by a significant 37.3% growth in new passenger vehicle sales, largely attributed to a remarkable 171% year-on-year rise in electric vehicle (EV) sales. This surge in EV sales was prompted by impending business buyer incentives set to expire on September 1st. Furthermore, in September, German consumer prices saw a year-on-year increase of 4.3%, signaling a potential relief from high inflation in Europe’s largest economy. Despite a 0.1% decline in passenger car sales in September, the first decrease since January, natural rubber prices continued to rise in the German market, driven by expensive imports from South-Asian countries. The overall trend in the third quarter was characterized by strong automotive demand and fluctuating inflation, impacting the natural rubber market in Germany.
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