June 18, 2025
Rubber India
Overview
On June 18, Japanese rubber futures reached a 2-1/2 week high, driven by rising crude oil prices and concerns over wet weather affecting supply.
Market Performance
Osaka Exchange (OSE):
The November rubber contract rose by 6 yen (2.02%) to 303 yen ($2.09) per kg. Earlier in the session, it peaked at 305.6 yen, the highest since May 30.
Shanghai Futures Exchange (SHFE):
The September rubber contract increased by 165 yuan (1.19%) to 14,020 yuan ($1,951.23) per metric ton.
The July butadiene rubber contract gained 190 yuan (1.66%), reaching 11,655 yuan ($1,622.08) per metric ton.
Singapore Market
The front-month July rubber contract last traded at 164.7 U.S. cents per kg, marking a 1% increase.
Rising Oil Prices:
Oil prices have increased, affecting rubber prices. Natural rubber competes with synthetic rubber, which is made from crude oil.
Wet Weather Concerns:
Heavy rains have disrupted rubber tapping in production areas, leading to supply concerns.
Thailand’s meteorological agency warned of heavy rains from June 20-23, which could result in flash floods and crop damage.
Export Trends:
Japan’s exports fell for the first time in eight months in May, mainly due to increased U.S. tariffs on automobiles. This decline may reduce rubber demand for tire manufacturing.
Geopolitical Tensions:
The ongoing conflict between Iran and Israel could disrupt global trade, potentially increasing freight rates and insurance costs.
Conclusion
The natural rubber market is currently influenced by rising oil prices, supply concerns from wet weather, and geopolitical tensions. Traders and producers should monitor these developments closely, as they could significantly impact pricing and availability in the near future.
