Uncategorized

June 12, 2025
Rubber India

Overview
Today, Japanese rubber futures experienced a decline, ending a two-day upward trend. This drop is attributed to the strengthening of the yen and ongoing uncertainties related to tariffs.

Key Market Highlights

Japanese Rubber Futures:
The Osaka Exchange (OSE) rubber contract for November delivery decreased by 0.67%, trading at 297 yen per kg as of 0239 GMT.

Analyst Farah Miller from Helixtap noted that the yen’s performance likely influenced this downturn, indicating potential weaker demand in the global market due to slower automotive sales and tariff issues.

Shanghai Futures Exchange (SHFE):
The September delivery rubber contract rose slightly by 0.11%, reaching 13,850 yuan per metric ton.

The most active July butadiene rubber contract increased by 1.12%, trading at 11,285 yuan per metric ton.

Singapore- SICOM
The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery STFc1 last traded at 163.3 U.S. cents per kg, down 0.1%.

Thai Rubber Prices:
The benchmark export-grade smoked rubber sheet (RSS3) saw a price increase of 1.56%, now at 77.05 baht.

Block rubber prices rose by 2.49%, reaching 62.19 baht.

Currency Influence
The yen strengthened against the U.S. dollar, making Japanese rubber less affordable for international buyers. A stronger currency typically reduces demand for exports.

Economic Indicators

Japan’s Nikkei average futures fell by 0.29% in early trading.

A government survey indicated a decline in business sentiment for the first time in five quarters, raising concerns about the impact of U.S. tariff policies on Japan’s export-driven economy.
Automakers expect a significant profit drop of 19.8% in fiscal 2025.

Global Context
Oil prices increased to their highest levels in over two months, driven by geopolitical tensions in the Middle East. This rise in oil prices can influence natural rubber prices since natural rubber competes with synthetic rubber, which is derived from crude oil.

Seasonal Trends
Typically, rubber production is low from February to May, with a peak harvesting period occurring from June to September.

Conclusion
The natural rubber market is currently facing challenges from currency fluctuations and economic concerns, particularly in the automotive sector. Traders will be closely monitoring these factors as they may influence future pricing and demand

(June 9, 2025)
Rubber India

Overview
Today, Japanese rubber futures experienced a decline after three consecutive sessions of gains. This drop is attributed to a slight easing of the U.S. dollar, coinciding with important trade discussions between the United States and China.

Key Market Developments

Japanese Rubber Futures:

The Osaka Exchange (OSE) saw the November rubber contract decrease by 4.1 yen (1.39%), settling at 290.2 yen per kg.

Shanghai Futures Exchange (SHFE):

The September rubber contract fell by 35 yuan (0.26%), now priced at 13,660 yuan per metric ton.

The July butadiene rubber contract increased by 25 yuan (0.22%), reaching 11,275 yuan per metric ton.

Singapore Exchange (SICOM):

The front-month rubber contract for July delivery traded at 160.6 U.S. cents per kg, down by 0.2%.

Thailand Rubber Prices:

The benchmark export-grade smoked rubber sheet (RSS3) increased by 1.08%, now at 73.9 baht.
Block rubber prices rose by 6.39%, standing at 69.95 baht.

Currency Effects
The U.S. dollar weakened by 0.3% against the yen, now at 144.39 JPY. This makes yen-denominated assets less appealing to foreign investors, potentially impacting demand.

Stock Market Insights
Japan’s Nikkei stock index rose by 0.9%, reflecting a generally positive market sentiment despite the rubber futures decline.

Oil Prices
Oil prices have maintained last week’s gains, with investors closely monitoring the ongoing U.S.-China trade talks. Natural rubber prices often follow oil trends, as natural rubber competes with synthetic rubber, which is derived from crude oil.

Seasonal Production Trends
The rubber market typically experiences low production levels from February to May, followed by a peak harvesting season that lasts until September.

Conclusion
The natural rubber market is currently influenced by currency fluctuations, global trade dynamics, and seasonal production patterns. As trade discussions unfold and oil prices stabilize, market participants will be watching closely for further developments.

June 3, 2025
Rubber India

Overview
Today, Japanese rubber futures have fallen to their lowest levels in over a year. The decline is primarily driven by weak demand from China, the top consumer of rubber, and expectations of increased supply due to seasonal tapping.

Market Details

Japanese Rubber Futures: The Osaka Exchange rubber contract for November delivery decreased by 5.3 yen (1.82%) to 285.6 yen ($1.99) per kg. Earlier, prices dropped to 280 yen, the lowest since February 13, 2024.

Singapore Exchange: The front-month rubber contract for June delivery rose slightly to 158.7 U.S. cents per kg, an increase of 0.8%.

Demand Factors
Weaker Demand from China: Tyre manufacturers in China are showing lower demand for rubber. This is compounded by a price war in the automotive industry, which is affecting profits and, consequently, reducing the need for tyres.

Impact of Auto Industry: China’s automobile sales are expected to influence rubber demand significantly. Recent data shows that factory activity in China shrank for the first time in eight months, indicating potential challenges for the manufacturing sector.

Supply Factors
Increased Raw Material Supply: Seasonal tapping is progressing well, with expectations that rubber supply will increase in June. This period typically sees a peak in production, lasting until September.
Market Sentiment: Traders anticipate a supply surplus, leading to preemptive selling in the futures market.

Conclusion
The natural rubber market is currently facing challenges due to weak demand from China and expectations of increased supply. The combination of lower tyre manufacturing needs and an anticipated surplus is impacting futures prices negatively. Traders and manufacturers will need to monitor developments in the automotive sector, as changes here could further influence rubber demand.

May 29, 2025
Rubber India

Overview
Today, Japanese rubber futures are trading within a narrow range. Traders are considering two main factors: wet weather in Thailand, a key rubber-producing country, and a price war in China’s auto market.

Market Prices

Osaka Exchange (OSE): The rubber contract for November delivery is down by 0.3 yen (0.09%), currently at 316.6 yen ($2.17) per kg.

Shanghai Futures Exchange (SHFE): The September rubber contract has decreased by 175 yuan (1.24%) to 13,895 yuan ($1,929.08) per metric ton.

June Butadiene Rubber Contract: This contract has increased by 50 yuan (0.44%), now at 11,380 yuan ($1,579.92) per ton.

Singapore Exchange (SICOM): The June delivery contract last traded at 166.8 U.S. cents per kg, up by 0.1%.

Key Factors Affecting the Market

Weather Conditions

Thailand’s Weather: The Thai meteorological agency has issued warnings about heavy rain and possible flash floods from May 28-29. This weather could damage rubber crops and delay harvesting, impacting supply.

Harvesting Season: The rubber harvesting season typically sees lower production from February to May, followed by a peak from June to September. Current weather disturbances are affecting tapping in production areas.

Auto Market Dynamics

China’s Price War: The automotive industry in China is facing intense pricing pressures, affecting major electric vehicle manufacturers. This situation raises concerns about the financial health of car companies and their suppliers, including those that produce rubber for tires.

Market Reactions: Shares of major electric car makers have dropped, indicating worries about a potential shake-out in the auto market. The performance of automobile sales can significantly influence rubber demand.

Inventory Updates
As of May 25, 2025, the total inventory of natural rubber in the Qingdao area stands at 614,600 tons, a slight increase of 400 tons (0.06%) from the previous period.

Conclusion
The natural rubber market is currently affected by adverse weather conditions in Thailand and pricing pressures in China’s automotive industry. Traders will continue to monitor these developments, as they may influence both supply and demand in the coming weeks.

Overview of the Natural Rubber Market Today

In the natural rubber market today, Japanese rubber futures experienced a slight increase due to stronger demand from China, the leading consumer of rubber. However, gains were capped by a stronger yen and seasonal harvesting trends.

Key Market Highlights

• Japanese Rubber Futures:
  • The Osaka Exchange’s October contract rose by 0.9 yen (0.28%) to 321.1 yen per kg ($2.24) as of 02:01 GMT.
• Shanghai Futures Exchange:
  • The September rubber contract increased by 55 yuan (0.37%) to 14,910 yuan ($2,071.87) per metric ton.
  • The June butadiene rubber contract edged up by 25 yuan (0.21%) to 11,980 yuan ($1,664.72) per metric ton.
• Singapore Exchange:
  • The June delivery contract last traded at 172.8 U.S. cents per kg, up 0.3%.

Supply and Demand in the Natural Rubber Market Today

• Inventory Levels:
  • As of May 18, 2025, total inventory in the Qingdao area was 614,200 tons, down by 4,500 tons (0.73%) from the previous period.
• Capacity Utilization:
  • China’s semi-steel and full-steel tire manufacturers reported monthly capacity increases of 24.5% and 18.19%, respectively.

Currency Influence on the Natural Rubber Market Today

• The yen strengthened against the dollar, trading at 143.27 yen. A stronger yen makes rubber more expensive for overseas buyers, which may impact demand.

Seasonal Effects on Natural Rubber Production

• Natural rubber production typically decreases from February to May, with a peak harvesting season expected from June to September. This seasonal pattern is influencing current price dynamics.

Weather Impacts on the Natural Rubber Market Today

• Thailand’s meteorological agency has issued warnings about heavy rains that could lead to flash floods, affecting rubber supply as the southwest monsoon approaches from May 23 to 27.

Regulatory News Affecting the Natural Rubber Market Today

• The European Commission has launched an investigation into potential anti-dumping measures on imports of tires from China, which could impact future rubber demand.

Conclusion

In conclusion, the natural rubber market today is seeing support from Chinese demand, but a stronger yen and seasonal factors are limiting price gains. Stakeholders should keep an eye on weather developments and regulatory changes, as these factors could significantly influence the market in the coming weeks.