The Association of Natural Rubber Producing Countries (ANRPC) reports that natural rubber (NR) prices experienced significant gains in March.

ANRPC noted that the price trend strengthened as supplies tightened in key markets such as block rubber, smoke flake rubber and latex.

While production rose 2.1 per cent year-on-year to 786,000 tonnes in March, the upstream sector of the natural rubber industry continued to grapple with tight supply, the agency said.

In its latest monthly review, ANRPC explained that the seasonal defoliation period, increased demand from China and international developments impacted supply during the month.

Geopolitical factors have historically impacted supply chains and global logistics, including the Russia-Ukraine conflict, instability in Africa and tensions in the Middle East. Managing supply chain risk for global companies has become increasingly complex due to conflicts around the world.

At the same time, ANRPC says, "Escalating tariffs between major economies, as well as regulatory shifts such as import and export bans, disrupt access to key resources and markets. In addition, attacks on shipping routes are forcing companies to seek alternative transport options, leading to logistical hurdles.

On the supply outlook, ANRPC forecasts that production will rise 3.4 per cent year-on-year next month, fuelled by a rebound in prices since the start of the year.

The association raised its full-year production forecast to 14.542 million tonnes, up 1.6 per cent year-on-year and up 0.1 percentage points from its previous estimate. The revision stems from improved full-year outlooks for China and Myanmar.

Meanwhile, demand rose 1.9% year-on-year to 1.3 million tonnes in March, according to ANRPC.

Global demand for 2024 was revised down slightly from the previously announced 15.826 million tonnes to 15.670 million tonnes, slowing year-on-year growth by 3%.

The revision was attributed to a drop in China's projected 2024 natural rubber demand, which now stands at 7.352 million tonnes compared to 7.500 million tonnes previously reported.