Global natural rubber prices are expected to rise in 2026 as demand improves while supply conditions remain constrained, according to the World Bank.
Ecofin Agency reports that the World Bank forecasts TSR20-grade rubber prices will rise by about 7.34% to around $1.90 per kilogram in 2026, up from $1.77 in 2025, driven by steady demand from emerging markets and the expanding automotive sector.
The report highlights that tire manufacturing, which accounts for nearly two-thirds of global rubber consumption, continues to support demand, particularly for heavy vehicles.
At the same time, supply remains under pressure due to structural challenges such as adverse weather and limited replanting of aging plantations.
The global market is also expected to remain in deficit for a sixth consecutive year, with a projected shortfall of about 400,000 tons in 2026 as demand outpaces production.
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Africa remains a key player in the global market, having exported nearly $3 billion worth of natural rubber in 2024, with Côte d’Ivoire leading regional output.
What This Means For Africa
Rising prices present a clear opportunity for African producers to increase export earnings. Countries like Côte d’Ivoire, Ghana, and Nigeria stand to benefit directly from stronger global demand.
However, most exports remain raw, limiting value capture within the continent. Expanding local processing will be critical to maximise long-term economic gains.
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