News

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.

April 16, 2025

Rubber India

Market Overview

Today, Japanese rubber futures experienced a decline due to ongoing uncertainty surrounding tariffs imposed by U.S. President Donald Trump. This uncertainty has negatively impacted market sentiment, raising concerns about potential repercussions on global economic growth and consumption.

Price Movements

Osaka Exchange (OSE): The rubber contract for September delivery fell by 6.5 yen, or 2.2%, closing at 292.9 yen ($2.1) per kg.

Shanghai Futures Exchange (SHFE): The September rubber contract decreased by 120 yuan, or 0.8%, to 14,810 yuan ($2,025) per metric ton.

Singapore Exchange (SICOM): The front-month rubber contract for May delivery last traded at 166.0 U.S. cents per kg, down 1.5% .

Factors Influencing the Market

Tariff Uncertainty: The U.S. has implemented significant tariffs on Chinese goods, which has led to retaliatory measures from China. This trade war is raising fears of a global recession, impacting market confidence in rubber and other commodities.

Economic Implications: Analysts suggest that the hefty U.S. tariffs pose a substantial risk to China’s economy, which is already facing challenges from a prolonged property downturn. This economic slowdown could further dampen demand for rubber.

Currency Fluctuations: The Japanese yen traded at 142.85 against the dollar, slightly down from 143.07 in the previous session. A stronger yen makes yen-denominated assets less affordable for overseas buyers, potentially affecting export demand for rubber.

Market Sentiment:
The overall sentiment in the market remains cautious as traders assess the implications of the ongoing trade tensions and their potential impact on consumption patterns globally .

Conclusion
The Japanese rubber market is currently facing downward pressure due to tariff uncertainties and broader economic concerns. Traders are closely monitoring developments in U.S.-China trade relations, as these factors will likely continue to influence market dynamics in the near term.

February 18, 2025

Rubber India

Overview
Japanese rubber futures exhibited limited movement today as traders assess the impact of a stronger yen alongside China’s efforts to invigorate private sector confidence. Notably, demand for rubber from China, the largest consumer, continues to falter, contributing to a cautious market sentiment.

Market Highlights

Osaka July delivery (JRUc6) declined by 0.3 yen (0.08%) to 371.2 yen ($2.45) per kg.

SHFE May fell by 140 yuan (0.78%) to 17,755 yuan ($2,440.82) per metric ton.

The February butadiene rubber dropped 240 yuan (1.68%) to 14,010 yuan ($1,925.98) per metric ton.

SICOM March delivery last traded at 201.9 U.S. cents per kg, down 0.6%.

Currency Impact
The yen (JPY=EBS) held steady at 151.61 per dollar, gaining nearly 4% against the dollar since the beginning of 2025. A stronger yen reduces the affordability of yen-denominated assets for foreign buyers, adding pressure to prices.

Supply and Demand Dynamics

Production Trends:8 Recent reports indicate lower-than-expected rubber destocking at Qingdao port, while production in downstream companies has accelerated. However, poor shipment conditions are dampening raw material demand.

Chinese Market: Despite efforts by President Xi Jinping to engage with major technology leaders to bolster sentiment, overall economic growth remains sluggish, further impacting rubber demand.

Inventory Levels: As of February 9, 2025, total natural rubber inventory in Qingdao rose to 569,000 tons, indicating a 3% increase. The social inventory across China reached 1.363 million tons, reflecting ongoing accumulation amidst weak demand.

Outlook
The market is navigating mixed signals, with supply constraints from major producing regions like Vietnam and Northeast China due to seasonal harvesting suspensions. However, downstream manufacturers are primarily focused on depleting existing inventories rather than ramping up purchases.

As the Spring Festival concludes, an influx of natural rubber latex shipments is expected, which may increase spot circulation at ports. Despite rising cost support from decreased overseas supply, limited demand could lead to a volatile market landscape.

Key Considerations

Supply Shrinkage: Seasonal harvesting suspensions in key regions may lend support to rubber prices.

Weak Demand: Downstream manufacturers are cautious, limiting short-term purchasing activity.

Market Volatility: The interplay of rising costs and stagnant demand may result in continued price fluctuations.

In conclusion, the rubber market is characterized by a stalemate influenced by both supply constraints and weak demand, suggesting a complex environment for traders in the coming weeks.