Rubber exports dip in April as production continues downward trend

Sri Lanka’s rubber sector continued to face headwinds in the first quarter of 2025, with the Central Bank confirming a decline in production, reflecting the persistent challenges in the industry, according to Forbes and Walkers Commodity Brokers’ latest rubber report.
The export performance mirrored the dip in output, with earnings from rubber and rubber finished products falling by 8.16 percent year-on-year in April 2025, totalling US $ 61.15 million. The drop was primarily driven by a 17.28 percent plunge in exports of pneumatic and retreated rubber tyres and tubes.
The cumulative exports for the first four months of 2025 amounted to US $ 312.43 million, down 6.74 percent from the same period last year. Tyre and tube exports saw the sharpest contraction, tumbling 22.47 percent compared to the corresponding period in 2024.
Despite the broader market challenges, exports to Pakistan showed a marginal improvement, rising by 1.23 percent from January to April 2025. The uptick was attributed to stronger demand for sheet rubber, coconut ekels and other base metal products, pointing to potential in select regional markets.
The volume of rubber available at public auctions dropped to 354,727 kilogrammes, down from 389,424 kilogrammes a year ago.
In the domestic market, premium-grade LCR 1X recorded a price surge of Rs.62.50 per kilogramme, indicating firm demand and a bullish market sentiment. Other Latex Crepe grades followed suit, with No. 1 increasing by Rs.40.00, No. 2 by Rs.67.50, No. 3 by Rs.88.75 and No. 4 by Rs.33.25 per kilogramme, reflecting a steady upward trend in this category. The Scrap Crepe segment delivered mixed results. While 2X Brown edged down by Rs.7.00, gains were seen in other grades: 1X Brown rose by Rs.22.50, 3X Brown by Rs.19.25 and 4X Brown by Rs.29.50 per kilogramme, reinforcing a largely positive performance.
The RSS volumes at the auctions remained subdued, due to the rubber tapping disruptions caused by rainfall. The manufacturers relied on imported RSS, mostly lower grades, to meet their needs. RSS1 traded at Rs.700, with other grades remaining unquoted.
Weather conditions fluctuated through May, with sunny mornings and occasional evening showers early in the month giving way to more consistent rainfall by mid-May. The Meteorology Department forecasts several spells of showers in early June, particularly in the Western, Sabaragamuwa, Galle and Matara districts. Meanwhile, the rubber industry is gearing up for RUBEXPO 2025, the sixth edition of the international exhibition dedicated to the sector. Scheduled from August 29 to 31, at the BMICH, the event will serve as a key platform for regional rubber manufacturers, suppliers and professionals to network and exchange insights.