June 19, 2025
Rubber India
Overview
Today, the natural rubber market is experiencing stability, with prices trading in a narrow range. Investors are balancing concerns about slowing demand from China, the largest consumer, against potential supply issues due to adverse weather conditions.
*Osaka Exchange (OSE): *
The November rubber contract is priced at 305.2 yen ($2.10) per kg, up 0.2 yen (0.07%).
Shanghai Futures Exchange (SHFE):
The September rubber contract has increased to 14,020 yuan ($1,949.66) per metric ton, up 20 yuan (0.14%).
Singapore Exchange (SICOM):
The July rubber contract last traded at 164.5 U.S. cents per kg, down 0.4%.
China’s Demand:
There are signs of slowing demand for rubber in China, primarily due to reduced automobile sales and manufacturing activities. Despite an increase in capacity utilization rates for tyre production, the overall demand remains capped due to insufficient orders.
Supply Concerns
Weather Warnings in Thailand: Thailand, a major rubber producer, has issued warnings for heavy rainfall that could lead to flash floods from June 21-24. This weather could threaten rubber supplies and potentially support higher prices.
Crop Damage Risks:
Farmers are advised to prepare for possible crop damage due to the expected weather conditions.
Inventory Levels
Recent data shows a slight increase in natural rubber inventories, which may exert bearish pressure on the market. As of June 15, 2025, inventories in the Qingdao area totaled 606,900 tons, reflecting an increase of 0.14 million tons (0.23%) from the previous period.
Industry Updates
Automobile Sector Scrutiny: In China’s Henan province, banks have halted high commissions for auto loans, tightening financial support for car dealerships. This move coincides with increased scrutiny of the auto sector, which is facing a price war among manufacturers.
Conclusion
The natural rubber market is currently in a tight range as investors remain cautious. While supply concerns from adverse weather in Thailand may support prices, the slowing demand from China and rising inventories present challenges. Stakeholders are advised to monitor these developments closely as they could significantly impact future price movements.
