Supply and Demand
Supply and demand are the main factors determining TSR20 rubber prices. Major rubber-exporting countries like Thailand and Indonesia account for a significant portion of the global natural rubber supply. Meanwhile, the demand primarily comes from the tire manufacturing industry, which consumes over 70% of total natural rubber.
Impact of Weather and Natural Disasters
Rubber trees are highly dependent on weather conditions. Floods, droughts, or pest infestations can directly impact rubber production, thereby altering prices. Similarly, the RSS3 rubber market is also significantly affected when production is disrupted.
Crude Oil Prices
Synthetic rubber, a competitor to natural rubber, is made from crude oil. When crude oil prices rise, the demand for TSR20 rubber also increases, pushing rubber prices higher.
Trade Policies and Global Economy
Tariff policies or restrictions on rubber imports and exports in producing countries can create significant volatility in the market.
Exchange Rates
Since TSR20 rubber is priced in USD, fluctuations in the USD/local currency exchange rate directly affect the rubber’s value.
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Forecast for TSR20 Rubber Price Trends
Short-Term Outlook
Global Economic Recovery: Economic stimulus packages in many countries boost demand for industrial raw materials, including TSR20 rubber.
Stable Supply: Major producing countries like Thailand are increasing production to meet post-pandemic demand.
Long-Term Outlook
Investment in Electric Vehicles: The boom in electric vehicle manufacturing drives a sharp increase in TSR20 rubber demand over the next 5–10 years.
Sustainable Production Technology: The shift toward environmentally friendly rubber production is expected to impact prices and supply.
