June 25, 2025
Rubber India
Overview
Today, Japanese rubber futures saw a slight increase due to positive investor sentiment following a ceasefire agreement between Iran and Israel. However, growth was limited by ongoing price competition within China’s auto industry.
Market Performance
Osaka Exchange (OSE)
December Rubber Contract (JRUc6):
Morning Trade: Up by 1.1 yen (0.37%)
Closing Price: 294.5 yen ($2.03) per kg
Shanghai Futures Exchange (SHFE)
September Rubber Contract (SNRv1):
Change: Down by 15 yuan (0.11%)
Closing Price: 13,760 yuan ($1,918.49) per metric ton
July Butadiene Rubber Contract (SHBRv1):
Change: Down by 95 yuan (0.85%)
Closing Price: 11,095 yuan ($1,546.92) per metric ton
Singapore Exchange (SICOM)
July Rubber Contract (STFc1):
Last Trade Price: 159.9 U.S. cents per kg
Change: Up by 0.2%
Investor Sentiment
The announcement of a ceasefire between Israel and Iran has improved global investor sentiment, contributing to a rally in China’s stock market, which hit a three-month high on Tuesday. This positive atmosphere is helping to buoy rubber prices.
Economic Factors
China’s Auto Industry: The market is facing intense price competition due to the rise of “zero-mileage” cars. This price war is affecting tyre prices negatively, as lower vehicle prices lead to reduced demand for tyres.
Guidelines on Domestic Consumption: Beijing has introduced new financial tools aimed at boosting domestic consumption, which may indirectly support the rubber market.
Weather Impact
Thailand, a major rubber producer, is expected to experience heavy rains from June 24-27, which could lead to flash floods. This weather may impact rubber production in the region.
Oil Prices
Oil prices have risen slightly following a significant drop of 6% in the previous session. The relationship between oil prices and natural rubber remains important, as rubber competes with synthetic alternatives made from crude oil.
Conclusion
While the ceasefire between Iran and Israel has improved market sentiment, challenges from the Chinese auto industry and weather conditions in Thailand could influence rubber prices in the near future. Investors should remain attentive to these factors as they navigate the market.
