Why is the global rubber market likely to see shortages in 2025?

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Why is the global rubber market likely to see shortages in 2025?

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Why is the global rubber market likely to see shortages in 2025?

^{Published on 2025-03-15 16:00:57 - Euronews}

Euronews Business looks at the factors impacting the rubber market this year, while also exploring how sustainable farming practices like agroforestry may impact the rubber industry.

The global rubber market is poised to face shortages in 2025 due to a combination of factors including increased demand from the automotive industry, particularly for electric vehicles which require more rubber for tires, and disruptions in supply chains. Natural rubber production is being hampered by adverse weather conditions, diseases affecting rubber trees, and labor shortages in major producing countries like Thailand, Indonesia, and Malaysia. Additionally, the shift towards synthetic rubber, which relies on petroleum, is challenged by volatile oil prices and geopolitical tensions affecting oil supply. These elements collectively suggest a tightening of the rubber market, potentially leading to higher prices and supply constraints in the near future.

Read the Full Euronews Article at:
[ https://www.msn.com/en-in/money/markets/why-is-the-global-rubber-market-likely-to-see-shortages-in-2025/ar-AA1AVOos ]