July 7, 2025
Rubber India
Overview
Today, the natural rubber market in Japan experienced a decline, influenced by falling oil prices and concerns over demand. Ongoing uncertainties related to U.S. tariffs also contributed to the bearish sentiment.
Key Market Movements
Japanese Rubber Futures
The Osaka Exchange (OSE) rubber contract for December delivery decreased by 0.4 yen (0.13%), settling at 311.7 yen ($2.15) per kg.
Shanghai Futures
On the Shanghai Futures Exchange (SHFE), the rubber contract for September delivery fell by 90 yuan (0.64%), now priced at 13,985 yuan ($1,949.78) per metric ton.
The August butadiene rubber contract saw a more significant drop of 250 yuan (2.22%), reaching 11,020 yuan ($1,536.40) per metric ton.
Singapore Exchange
The front-month rubber contract on the Singapore Exchange’s SICOM platform for August delivery last traded at 162.6 U.S. cents per kg, down by 0.1%.
Influence of Oil Prices
Oil prices fell by over 1% following an unexpected increase in output from OPEC+. This decline is significant as natural rubber competes with synthetic rubber (derived from crude oil) for market share.
Currency and Economic Factors
The U.S. dollar eased slightly against the yen, trading at 144.49 yen per dollar, impacting the affordability of yen-denominated assets for overseas buyers.
The Nikkei Index dropped by 0.3% amid concerns over U.S. tariffs.
Industry Insights
Despite a rebound in production and sales data from the automobile industry in the first half of 2025, it has not generated enough bullish momentum in the rubber market. Concerns over weaker consumer demand and anticipated slower vehicle sales are weighing heavily on investor sentiment.
Conclusion
In summary, the natural rubber market is facing downward pressure due to falling oil prices and uncertainty surrounding demand and tariffs. Investors are cautious, reflecting broader economic concerns that are likely to influence market trends in the near future.
