July 23, 2025
Rubber India
Overview
The natural rubber market saw positive movements today, largely driven by a new trade deal between the U.S. and Japan. This agreement includes a reduction in tariffs on Japanese automobile exports, boosting market sentiment.
Price Movements
Osaka Exchange (OSE):
December rubber futures rose by 0.4 yen (0.12%), reaching 332.3 yen ($2.26) per kg.
Shanghai Futures Exchange (SHFE):
September rubber futures declined by 50 yuan (0.33%), settling at 14,980 yuan ($2,088.97) per metric ton.
August butadiene rubber futures increased by 5 yuan (0.04%), now at 12,030 yuan ($1,677.59) per metric ton.
Singapore Exchange (SICOM):
August rubber futures traded at 170.2 U.S. cents per kg, down by 0.6%.
Trade Deal Impact
Former U.S. President Donald Trump announced a trade deal that reduces tariffs on Japanese automobile exports from 25% to 15%. This is expected to enhance automobile sales, which can drive up the demand for rubber in tire manufacturing.
Market Sentiment
The Nikkei index in Japan surged by 2.6%, with significant gains in the stocks of automakers, reflecting investor confidence stemming from the trade deal.
Supply Factors
In Thailand, the meteorological agency has warned of heavy rains from July 22-24, which could potentially cause flash floods. However, it is anticipated that these weather issues will be short-lived and will not significantly disrupt the overall rubber supply.
Factories in Thailand report sufficient stockpiles and are awaiting international purchase orders, reducing immediate concerns over supply shortages.
Global Context
The natural rubber market is also influenced by oil prices, as natural rubber competes with synthetic rubber, which is derived from crude oil. Today, oil prices steadied after recent declines, further supporting the natural rubber market.
Conclusion
The natural rubber market is experiencing a positive outlook today, fueled by the U.S.-Japan trade agreement and supportive supply conditions. Investors are optimistic, particularly in the automotive sector, which directly impacts rubber demand for tire production.
