Global Commodities Alternative Data and Insights

Helixtap

Helixtap collects, processes and distributes proprietary data, analyses and forecasts for the rubber, latex and automotive markets

Head of Content, Data & Research, Helixtap

Arusha Das

Head of Content, Data & Research

Commodities

<ul><li>The rubber supply chain seems to be grappling under the pressure of regular disruption in production coupled with soaring freight rates as both buyers are sellers struggle to maintain the status quo. According to industry reports Toyota had to temporarily stop several of its auto assembly lines due to the disruption to supply chains in Southeast Asian manufacturing hubs.Around 60% of the carmakers in Europe have been affected by the supply shortage, according to various market reports.The drop in production particularly in the key rubber producing countries like Indonesia, Thailand, Malaysia, and Vietnam has affected the global value chain.</li><li>Pandemic-driven production cuts, heavy rains, and labour shortages have created unprecedented disruption throughout the year.Most of the rubber-producing countries reduced their capacities by around 50% in a bid to contain rising Covid-19 cases in the region, at some point hitting a high of 30,000 cases a day.According to market sources, the Indonesian farmers are unable to tap as they are struggling with leaf blight and older trees.</li><li>The availability for Indonesian raw material is sparse; it is difficult to get the position for the whole year, added another source.“Due to the strict situation related to Covid-19 in Thailand, the producers have to control the number of workers in production, said a producing source, adding he would request 20 days advance booking for the shipments.The weather has also been a deterrent in the production.</li></ul>

The rubber supply chain seems to be grappling under the pressure of regular disruption in production coupled with soaring freight rates as both buyers are sellers struggle to maintain the status quo. According to industry reports Toyota had to temporarily stop several of its auto assembly lines due to the disruption to supply chains in Southeast Asian manufacturing hubs.Around 60% of the carmakers in Europe have been affected by the supply shortage, according to various market reports.The drop in production particularly in the key rubber producing countries like Indonesia, Thailand, Malaysia, and Vietnam has affected the global value chain.Pandemic-driven production cuts, heavy rains, and labour shortages have created unprecedented disruption throughout the year.Most of the rubber-producing countries reduced their capacities by around 50% in a bid to contain rising Covid-19 cases in the region, at some point hitting a high of 30,000 cases a day.According to market sources, the Indonesian farmers are unable to tap as they are struggling with leaf blight and older trees.The availability for Indonesian raw material is sparse; it is difficult to get the position for the whole year, added another source.“Due to the strict situation related to Covid-19 in Thailand, the producers have to control the number of workers in production, said a producing source, adding he would request 20 days advance booking for the shipments.The weather has also been a deterrent in the production.

Rubber Industry Struggles With Disrupted Supply Chain

Rubber Future SGX TSR20

Rubber Industry Struggles With Disrupted Supply Chain