Fundamentals Slightly Improve, Natural Rubber Market Prices Rise Slightly in August

August 29 update

According to the commodity market analysis system, the spot market price of natural rubber in China slightly increased in August. As of August 29, the spot price of natural rubber in the Chinese market was around 14,966 CNY/ton, up 3.52% from 14,458 CNY/ton at the beginning of the month. As of August 29, the mainstream prices for 24-year Guangken, Baodao, and Haibao full latex in the Qingdao area were between 14,850 and 15,200 CNY/ton.

In August, natural rubber raw material prices remained firm at high levels. As of August 29, the price of Thai latex stood at 55.45 Thai baht per kilogram, representing an overall decline of 1.00% compared to 55.00 Thai baht per kilogram at the end of July. On one hand, heavy rainfall and strong winds in parts of Thailand during the first half of August disrupted tapping activities for Thai Standard Rubber (TSR). On the other hand, China’s tapping suspension period, combined with unstable yields from Vietnam’s aging natural rubber plantations, contributed to a tighter market supply of raw materials—keeping prices robust and providing solid support for natural rubber.

In August, natural rubber inventories declined slightly, exerting a mildly bearish influence on the natural rubber market. As of August 24, 2025, the combined inventory volume of bonded and general-trade rubber in the Qingdao region stood at 606,200 tons, down 5.34% from 640,400 tons recorded at the end of July.

In August, downstream tire production slightly increased, providing support to the natural rubber market. As of August 22, the semi-steel tire production of Chinese tire enterprises slightly increased to around 74%; the full-steel tire production of tire enterprises in Shandong region slightly increased to about 65%.

Market Forecast: Currently, high global raw material prices in China and increased operating rates in the downstream tire industry are both supporting natural rubber prices. Meanwhile, port inventories of natural rubber have slightly declined. With the peak season approaching, natural rubber prices are expected to fluctuate upward in the near term.