(Agence Ecofin) – In 2024, coffee and cocoa prices will mark the agricultural raw materials market by reaching historic highs. Alongside these flagship products, rubber also stood out although in more modest proportions.
Natural rubber prices have generally increased in 2024 on the main world stock exchanges. Thus on the Singapore Stock Exchange (SICOM), known for mainly dealing in standard natural rubber grade TSR 20 (Technically Specified Rubber 20), prices rose by 27.1% over the whole year.
On the Tokyo Commodity Exchange (TOCOM), which mainly trades contracts for standard natural rubber RSS3 (Ribbed Smoked Sheet 3), the increase reached 57.1%.
In Singapore, for example, prices of standard TSR 20 grade natural rubber started at $1.55 per kilogram in January 2024, reaching a peak of $2.13 in October before closing the year at $1.97 .
TSR 20 price evolution in Singapore in 2024
This dynamic is explained by the growing demand in the automotive industry as well as by supply constraints linked to climatic conditions in production areas. In Thailand and Indonesia, which supply nearly 47% of global natural rubber production, supply fell in 2023/2024 due to reduced rainfall linked to the El Niño phenomenon which affected the productivity of rubber plantations. .
According to World Bank data, natural rubber production in these two countries decreased by 8% and 13% respectively over the 12 months ending in August 2024. In its Commodity Markets Outlook 2024 report published on Tuesday October 29, the financial institution also predicts that rubber prices will remain at high levels until 2026.
Stéphanas Assocle
Edited by Wilfried ASSOGBA
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07/01/2025 – Cocoa and coffee: when the weather causes prices to soar in 2024
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