The price difference between natural and synthetic rubber returned to positive territory in May.

The price differential between natural and synthetic rubber returned to positive territory in May, reaching US$56.71/ton, according to DATAGRO's new bi-weekly rubber report. This movement follows a sharp deterioration observed in the first quarter, culminating in the spread reaching a five-year low in March, at negative US$629.59/ton. According to DATAGRO, the reversal was favored by the stabilization of oil prices in the international market, the main raw material for synthetic rubber, while natural rubber prices remained supported by concerns about supply in the main Asian producing countries. With the return of the differential to positive levels, synthetic rubber is once again gaining competitiveness against natural rubber, increasing incentives for its substitution, especially in the tire industry. For more information, read the full report at [link to report]. analysis section of the DATAGRO Portal.

This text was translated by machine from Brazilian Portuguese.