June 30, 2025
Rubber India
Overview
The natural rubber market showed positive movement today, driven by concerns over supply due to heavy rainfall in key production areas. Here are the highlights from the market:
Key Market Information
Japanese Rubber Futures: The Osaka Exchange rubber contract for December delivery rose by 2.7 yen (0.87%) to 312.4 yen ($2.17) per kg. This marks a total increase of 4.98% for the month of June.
Shanghai Futures Exchange:
September delivery rubber contract dipped by 105 yuan (0.75%) to 13,940 yuan ($1,945.41) per metric ton.
August butadiene rubber contract increased by 15 yuan (0.13%) to 11,225 yuan ($1,566.51) per metric ton.
Singapore Exchange: The August delivery rubber contract last traded at 162.9 U.S. cents per kg, reflecting a decrease of 0.5%.
Market Sentiment
The market sentiment improved significantly due to heavy rainfall reported in southwestern China, northern Thailand, Vietnam, and the Philippines. This has raised concerns about potential supply shortages.
Thailand’s meteorological agency has issued warnings of more heavy rains expected from July 1-5, which could further impact production.
Financial Markets
Japan’s Nikkei index rose by 1%, buoyed by positive sentiment in U.S. tech and large-cap growth stocks.
The U.S. dollar weakened against the yen, trading at 144.58 yen, following a 1% decline last week. A stronger yen makes yen-denominated assets less attractive to overseas buyers.
Economic Context
China’s central bank announced plans to enhance monetary policy adjustments in response to current economic conditions, signaling potential impacts on the market.
Oil prices have decreased due to easing tensions in the Middle East and expectations of another OPEC+ output increase in August. Since natural rubber competes with synthetic rubber (derived from crude oil), fluctuations in oil prices can influence natural rubber market dynamics.
Conclusion
The natural rubber market is currently benefiting from supply concerns due to adverse weather conditions. With positive movement in rubber futures, traders are advised to monitor developments in weather patterns and economic policies that may impact supply and demand in the near future.
