Jojo Mathew

October 31, 2023
Rubber India

Overview
Today, Japanese rubber futures experienced a decline due to weak demand from China. However, they are still on track for monthly gains, supported by a weaker yen.

Market Highlights

Japanese Rubber Futures:

The Osaka Exchange (OSE) rubber contract for April delivery fell by 1.4 yen, or 0.45%, to 312 yen ($2.07) per kg.
Despite this drop, the contract has risen by 2.06% so far this month.

Shanghai Futures Exchange (SHFE):

The rubber contract for January delivery decreased by 400 yuan, or 2.58%, to 15,095 yuan ($2,119.19) per metric ton.

The December butadiene rubber contract also fell, losing 165 yuan, or 1.53%, to 10,605 yuan per metric ton.

Singapore Exchange (SICOM):

The front-month rubber contract for November delivery last traded at 174 U.S. cents per kg, down 0.4%.

Factors Influencing the Market

Demand from China:

China’s factory activity has shrunk for the seventh consecutive month, indicating weak domestic demand in the second largest economy.

Currency Impact:

The U.S. dollar strengthened 0.9% against the yen, reaching 154.08, the highest level since February. A weaker yen makes yen-denominated assets more affordable for international buyers.

Oil Prices:

Oil prices have eased due to a stronger dollar and rising supply from major producers. Natural rubber prices often follow oil trends as it competes with synthetic rubber derived from crude oil.

Production Conditions:

Major producing regions are moving into peak production season, and better weather conditions are expected to enhance raw material supply, which could further suppress rubber prices.

Automotive Industry:

The ongoing Nexperia chip crisis is causing challenges for automakers, which may affect rubber demand as automobile manufacturing relies heavily on rubber-made tires.

Economic Context

The U.S. Federal Reserve cut interest rates by 0.25% to a range of 3.75–4.00%. Fed Chair Jerome Powell indicated that there are no clear plans for further rate cuts, which adds a layer of uncertainty to the market.

President Trump announced a reduction in import tariffs on Chinese goods, but the lack of an official statement from China has left investors cautious about potential trade issues.

Conclusion
The natural rubber market is showing signs of resilience despite current challenges, primarily driven by a weaker yen and anticipated increases in supply. However, ongoing economic uncertainties and weak demand from China could impact future prices.

Rubber India Market Update

Overview

Tripura rubber price today is moving in line with international markets. Japanese futures slipped slightly on weak auto demand, but supply worries due to rains and typhoon activity are keeping losses limited. Dealers in Tripura can expect cautious buying interest with some short-term support from pre-holiday Chinese demand.

Market Highlights

• Japan (Osaka Exchange): February contract closed at 312 yen/kg, down 1 yen (–0.32%).
• China (SHFE): January contract rose 65 yuan to 15,670 yuan/ton.
• Butadiene Rubber (SHFE, Nov): Up 55 yuan to 11,600 yuan/ton.
• Singapore (SICOM): October contract edged up 0.2% to 173.8 US¢/kg.

Demand Factors

• Tripura rubber price today reflects weak global sentiment, with auto industry profits under pressure.
• Restocking ahead of China’s National Day holiday (Oct 1–8) provides some temporary support, but overall buying remains limited.

Supply Concerns

• Typhoon “Ragasa” is bringing heavy rains across Southeast Asia, disrupting rubber tapping in Thailand and neighboring countries.
• In Tripura, rubber tapping may also face disruptions due to recent monsoon rains, which can affect supply and influence Tripura rubber price today.

Thailand Price Trends

• Sheet Rubber: Stable at 61.05 THB/kg.
• Latex: Fell by 0.50 THB to 54.80 THB/kg.
• Cup Lump: Up 0.10 THB to 53.85 THB/kg.

Export Data – Thailand

• Jan–Aug 2025 natural rubber exports: 1.789 million tons (–8% YoY).
• Compound rubber exports: 1.117 million tons (+41% YoY), with 1.111 million tons shipped to China.
• Combined exports: 2.906 million tons (+6.3% YoY).
• Exports to China: 1.807 million tons (+27% YoY).

This global export scenario directly impacts Tripura rubber price today, as India imports and exports remain tied to regional movements.

Additional Factors

• A stronger yen makes Japanese contracts less attractive.
• Oil prices dipped, slightly pressuring synthetic rubber but indirectly supporting natural rubber.
• The EU’s EUDR law remains a concern, with requests from Thailand and the U.S. for postponement.

Outlook for Tripura Dealers

The outlook for Tripura rubber price today stays slightly positive:

• Support: Rain disruptions, weaker baht, Chinese pre-holiday demand.
• Risks: EUDR uncertainty, weak global auto demand, and macroeconomic slowdown.

👉 Dealers in Tripura should remain cautious but can expect Tripura rubber price today to hold steady to firm in the short term.

📅 September 10, 2023
🏷️ Rubber India

🌐 Overview

Rubber futures slipped today due to weak automobile demand 🚗📉, but flooding risks in Thailand 🌧️🌊 helped limit deeper losses.

📈 Market Performance

🇯🇵 Osaka Exchange (OSE)
📦 February Delivery: 320 yen ($2.17)
🔻 -0.4 yen (0.12%)

🇨🇳 Shanghai Futures Exchange (SHFE)
📦 January Delivery: 15,980 yuan ($2,242.24)
🔻 -110 yuan (0.68%)

🧪 Butadiene Rubber (Oct): 11,760 yuan/ton
🔻 -60 yuan (0.51%)

🇸🇬 Singapore Exchange (SICOM)
📦 September Delivery: 173.5¢/kg
🔻 -0.3%

🇹🇭 Thai EUDR Rubber Prices

🌱 Fresh Latex: 58.00 (Stable)
🪣 Cup Lump (100%): 57.30 (Stable)
📜 Raw Sheet Rubber: 62.20 (-0.20)
🥽 RSS Grade 3: 64.20 (-0.20)

💡 Industry Insights

🛠️ Bosch CEO expects continued auto sector pressure next year, hurting tire demand.
🇨🇳 China’s consumer prices fell sharply 📉, showing effects of government measures.

🌍 External Factors

🛢️ Oil prices rose ⬆️ after Israel’s attack in Qatar ⚔️, boosting synthetic rubber costs – which competes with natural rubber.

⛈️ Weather Warnings

Thailand warns of heavy rains 🌧️⚠️ & flash floods 🌊 (Sep 10–11), possibly disrupting production.

✅ Conclusion

The natural rubber market faces weak demand 🚗📉 but flood risks in Thailand 🌧️ are providing support.
📢 Traders & investors should watch these developments closely!

July 30, 2025
Rubber India

Overview
Today, Japanese rubber futures have increased due to positive sentiments surrounding U.S.-China trade talks and a recovery in global automobile sales. However, high inventory levels are putting a cap on gains in the market.

Market Prices

Osaka Exchange (OSE):

January delivery rubber contract rose by 0.6 yen (0.19%) to 322.5 yen ($2.18) per kg.

Shanghai Futures Exchange (SHFE):

September delivery rubber contract increased by 55 yuan (0.37%) to 15,030 yuan ($2,094.72) per metric ton.

September butadiene rubber contract remained unchanged at 11,855 yuan ($1,652.22) per metric ton.

Singapore Exchange (SICOM):

August delivery contract fell by 1% to 170.2 U.S. cents per kg.

Trade Talks and Tariff Updates
Recent discussions between U.S. and Chinese officials resulted in a mutual agreement to extend their 90-day tariff truce. This follows a similar agreement between the U.S. and the European Union, which has set tariffs at 15% on most goods—half of what was initially threatened.

Automobile Sales
Global automobile sales have shown a significant growth of 5% in the first half of 2025, marking the fifth consecutive month of growth in June. This uptick could positively influence rubber demand, as increased vehicle production typically requires more rubber for tires.

Inventory Levels
Despite the rise in automobile sales, high inventory levels are a concern. As of July 27, total inventory in the Qingdao area reached 640,400 tons, an increase of 6,000 tons (0.91%) from the previous period. This excess stock may pressure rubber prices in the near term.

Industry Insights
Factories in Thailand are currently hesitant to purchase more rubber due to adequate production stock and uncertainty surrounding upcoming U.S. tariffs, which are set to take effect on August 1.

Investors are closely monitoring U.S. Federal Reserve policy decisions and upcoming Chinese PMI data, which could impact market dynamics.

Company News
Nissan, a major Japanese automaker, announced plans to stop production at its Civac plant in Mexico by March 2026 as part of a global restructuring effort. This change will reduce Nissan’s global production capacity from 3.5 million vehicles to 2.5 million, decreasing the number of manufacturing sites from 17 to 10. This decision may further influence rubber demand as vehicle manufacturing adjusts.

Conclusion
In summary, while optimism surrounding trade talks and automobile sales is helping to boost rubber futures, the high levels of inventory are a significant factor keeping prices in check. Market participants should stay alert to economic indicators and industry developments that could affect rubber demand and pricing trends moving forward.

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.