News

June 16, 2025
Rubber India

Overview
Today, Japanese rubber futures are trading within a narrow range as traders assess the impact of weakening demand in China against supply concerns due to heavy rainfall in production areas.

Current Prices

Osaka Exchange (OSE):

November rubber contract: 292 yen ($2.02) per kg, down 0.2 yen (0.07%).

Shanghai Futures Exchange (SHFE):

September rubber contract: 13,900 yuan ($1,934.88) per metric ton, up 85 yuan (0.62%).

July butadiene rubber contract: 11,495 yuan ($1,600.11) per metric ton, up 180 yuan (1.59%).

Singapore Exchange (SICOM):

July rubber contract: 161.7 U.S. cents per kg, unchanged.

Demand and Supply Dynamics

Demand Concerns: The demand for rubber, especially from tyre manufacturers in China, is currently weak. This slowdown is typical during the off-season, leading to reduced enthusiasm for purchasing raw materials.

Supply Issues: Recent rainfall in key rubber-producing regions, specifically Hainan and Yunnan, has disrupted rubber tapping. This disruption raises concerns about future supply availability. Additionally, tropical storm Wutip has caused heavy rains and strong winds in southern China, further impacting production.

Market Sentiment
Traders are closely monitoring the balance between supply and demand. Many are hopeful for a recovery in demand, especially if uncertainties related to tariffs and geopolitical tensions ease. Currently, the capacity utilization rate for full-steel tyre companies stands at 61.22%, a decrease of 2.23 percentage points from the previous week.

Trade Talks
Japanese Prime Minister Shigeru Ishiba is set to discuss trade issues with U.S. President Donald Trump, aiming to persuade him to reconsider tariffs that threaten Japan’s automotive industry. This dialogue could have indirect effects on rubber demand if tariffs are lifted.

Conclusion
The rubber market remains uncertain and directionless as traders await clearer signals regarding supply stability and demand recovery. Until more information is available, prices are likely to remain within a limited range.

June 13, 2025
Rubber India

Overview
Today, the natural rubber market is experiencing upward movement due to rising oil prices following Israel’s military strikes on Iran. This geopolitical event has led to increased volatility in Asian markets, impacting rubber futures.

Market Prices

Osaka Exchange (OSE):
November delivery rubber contract rose by 1%, reaching 293.7 yen per kg.

Shanghai Futures Exchange (SHFE):
September delivery rubber contract increased by 0.6%, priced at 13,860 yuan per metric ton.

July butadiene rubber contract climbed by 0.7% to 11,295 yuan per metric ton.

Singapore Exchange (SICOM):
Front-month rubber contract for July delivery is at 163 U.S. cents per kg, up 1.9%.

Oil Prices
Oil prices surged over 7%, hitting their highest levels in months. This increase is significant as natural rubber competes with synthetic rubber, which is derived from crude oil.

Asian Market Reactions
The Nikkei 225 index in Japan fell by 1.3% in early trading, reflecting broader market concerns linked to rising oil prices and geopolitical tensions.

Production and Supply Factors
The natural rubber production typically decreases from February to May, leading to a peak harvesting period from June to September. This seasonal pattern is crucial for understanding market dynamics.

Inventory Levels
In China, rubber inventories have slightly decreased but are still relatively high. As of June 8, 2025:

Total inventory in the Qingdao area stood at 605,500 tons, down by 4,100 tons (or 0.67%) compared to the previous reporting period.

High inventory levels can exert bearish pressure on natural rubber prices despite the current upward trend.

Economic Context
Recent developments in trade negotiations between China and the United States have contributed to a more favorable macroeconomic outlook, positively influencing the Shanghai rubber market.

Conclusion
The natural rubber market is currently benefiting from rising oil prices and geopolitical events, with prices on various exchanges showing solid gains. However, high inventory levels in China and seasonal production trends could present challenges in sustaining this upward momentum.

Investors and stakeholders should monitor both geopolitical developments and market inventory levels closely as the situation evolves.

Rubber India
June 11, 2025

Overview
Today, the natural rubber market showed mixed results, with Japanese futures rising for a second consecutive session. This increase is largely attributed to a weaker yen, while other markets experienced declines.

Key Market Highlights

Japanese Rubber Futures:
The Osaka Exchange (OSE) saw the November rubber contract rise by 2 yen, or 0.67%, reaching 298.8 yen per kg. This increase is influenced by the weakening yen following the Japanese government’s plans to buy back low-coupon super-long government bonds.

Shanghai Futures Exchange (SHFE):
The September rubber contract fell by 10 yuan, or 0.4%, to 13,765 yuan per metric ton.

The July butadiene rubber contract decreased by 165 yuan, or 1.46%, to 11,100 yuan per metric ton.

Singapore Exchange (SICOM):
The July rubber contract last traded at 162.3 U.S. cents per kg, down 0.7%.

Thailand Rubber Prices:
The benchmark export-grade smoked rubber sheet (RSS3) rose by 2.67% to 75.87 baht.

In contrast, block rubber prices dropped by 13.25% to 60.68 baht.

Market Influences

Yen Weakness:
The yen has eased against the U.S. dollar, making yen-denominated assets more attractive to international buyers. This change is expected to boost demand for Japanese rubber.

Oil Prices:
Oil prices fell due to concerns about weak demand from China and increased production from OPEC+. This decline can negatively impact natural rubber prices as it competes with synthetic rubber, which is derived from crude oil.

Seasonal Production Trends:
Rubber crops are typically in a low production phase from February to May, with a peak harvesting period extending until September. This seasonal trend plays a crucial role in price fluctuations.

Conclusion
In summary, today’s natural rubber market is characterized by rising prices in Japan amid a weakening yen, while other markets like Shanghai and Singapore faced declines. The influence of oil prices and seasonal production patterns continue to shape market dynamics. Traders will be closely monitoring developments in U.S.-China trade talks, which could further impact demand.

06 June 2025
Rubber India

Overall Market Sentiment:

Japanese rubber futures are up, hitting a one-week high. This positive movement is mainly driven by hopes that trade tensions between the U.S. and China might ease.

However, despite today’s gains, the rubber contract is still heading for a slight weekly loss, largely due to concerns about the U.S. economy showing some weakness.

Key Price Points:

The Osaka Exchange (OSE) rubber contract for November delivery increased by 4.9 yen, or 1.68%, reaching 297.3 yen ($2.1) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 215 yuan, or 1.59%, to 13,770 yuan ($1,917) per metric ton.

The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery was last traded at 161.9 U.S. cents per kg, up 1.2%.

Factors Influencing the Market:

U.S.-China Trade Relations: Optimism surrounding potential easing of trade tensions between the U.S. and China is boosting the market. A recent call between President Trump and President Xi Jinping has raised hopes for further talks.

U.S. Economic Data: Weak economic data from the U.S. is creating some headwinds. Investors are closely watching the U.S. nonfarm payrolls report for further insights into the health of the U.S. economy.

Japanese Economic Data: In Japan, household spending unexpectedly fell in April, indicating that consumers are cutting back on spending due to rising prices.

Currency Exchange Rates: The yen is currently trading at 143.88 against the dollar. A weaker yen tends to make yen-denominated assets, like rubber, more attractive to overseas buyers.

Other Markets: Japan’s Nikkei stock index is up 0.5% today. Oil prices are slightly down but are on track for their first weekly gain in three weeks.

In Summary:
The natural rubber market is seeing some positive momentum today, driven by hopes of easing trade tensions. However, concerns about the U.S. economy and weak Japanese consumer spending are still present, leading to a mixed outlook for the week. Currency movements and developments in related markets like oil are also playing a role. [2]

May 30, 2025
Rubber India

Overview
Today, Japanese rubber futures experienced a decline, marking the first weekly loss in five weeks. This drop is attributed to increased supply from seasonal harvesting and ongoing uncertainty regarding U.S. tariffs.

Market Performance
Osaka Exchange (OSE): The rubber contract for November delivery fell by 7.1 yen (2.26%), settling at 307.5 yen ($2.14) per kg. The contract has decreased by 3.91% this week, its first weekly decline since April 25.

Shanghai Futures Exchange (SHFE): The September rubber contract decreased by 235 yuan (1.7%), reaching 13,605 yuan ($1,893.71) per metric ton. The active July butadiene rubber contract also saw a decline, dropping by 100 yuan (0.88%) to 11,245 yuan ($1,565.22) per ton.

Singapore Exchange (SICOM): The June delivery contract last traded at 162 U.S. cents per kg, down by 2.5%.

Supply Factors
As of May 28, domestic production areas and Vietnamese plantations have begun full-scale harvesting, which is increasing supply pressure in the market. The typical low production season lasts from February to May, followed by a peak harvesting period from June to September.

Trade Uncertainty
The market is facing trade uncertainty due to recent developments in U.S. tariffs. A federal appeals court has reinstated tariffs initially imposed by President Trump, reversing a previous court decision that had blocked these duties. This situation is contributing to volatility in the markets.

Currency Impact
In currency markets, the Japanese yen strengthened by 0.3% to 143.73 per dollar. A stronger yen makes yen-denominated assets less affordable for international buyers, potentially impacting demand.

Stock Market Reaction
The uncertainty surrounding U.S. tariffs also affected Japan’s stock market, with the Nikkei index falling by 1.4% to 37,880.58.

Conclusion
The natural rubber market is currently facing downward pressure due to increased supply and trade uncertainties. Traders should monitor developments in U.S. tariffs and the ongoing harvesting season for potential impacts on prices and market stability.