China, India Drive Natural Rubber Demand Amid Tight Supply

According to the Association of Natural Rubber Producing Countries (ANRPC), global natural rubber production fell 3.7% year-on-year in June to 1.2 million tonnes, while demand rose 3.3% to 1.3 million tonnes. The decline in output was attributed to seasonal wintering and unusually high temperatures and rainfall disruptions across Southeast and south Asia. The ongoing El Nino weather pattern is expected to peak by year-end, with a 63% probability of reaching “very strong” intensity between November and January 2027. China and India led the demand, supported by steady tire and EV-linked demand, with China’s NR consumption reaching 602,500 tonnes in June and India’s consumption projected to have reached 114,000 tonnes. The ANRPC projects global NR production to reach 15.310 million tonnes in 2026, up 2.3% from an estimated 14.971 million tonnes in 2025, while total demand is expected to reach 15.411 million tonnes, down from an earlier estimate of 15.602 million tonnes but up from 15.301 million tonnes in 2025.