June 17, 2025
Rubber India
Overview
Today, Japanese rubber futures have shown a slight increase due to adverse weather conditions affecting harvesting in key production areas. However, weaker demand from China limits further gains.
Market Movements
Osaka Exchange (OSE):
November delivery rubber contract (JRUc6) rose 0.27% to 294.7 yen ($2.03) per kg.
Shanghai Futures Exchange (SHFE):
September delivery rubber contract (SNRv1) up 0.4% to 13,885 yuan ($1,933.52) per metric ton.
July butadiene rubber contract (SHBRv1) increased 0.44% to 11,485 yuan ($1,599.31) per metric ton.
Singapore Exchange (SICOM):
July delivery contract (STFc1) last traded at 162.8 U.S. cents per kg, up 0.2%.
Weather Impact
Heavy rainfall in production areas is disrupting the harvesting of rubber. The harvesting season usually sees low production from February to May, followed by a peak period lasting until September.
Thailand’s meteorological agency has warned of potential heavy rains and flash floods from June 20-22, which could damage crops. Farmers are advised to be cautious.
Demand Factors
On the demand side, China’s semi-steel and full-steel tyre manufacturers reported a decline in capacity utilization for June compared to last year. This decline is attributed to insufficient orders, reflecting weaker demand for rubber in the world’s largest consumer market.
Currency Effects
The Japanese yen has slightly strengthened, trading at 144.70 per dollar. A stronger yen makes yen-denominated rubber less affordable for overseas buyers, which could impact export demand.
Oil Prices
Oil prices surged by 2% today amid rising tensions between Iran and Israel. Since natural rubber competes with synthetic rubber (derived from crude oil), fluctuations in oil prices can influence the rubber market.
Conclusion
The natural rubber market is currently experiencing mixed signals. While weather disruptions may support prices, diminishing demand from China and a stronger yen could pose challenges for further price increases. Investors and stakeholders should monitor these developments closely.
