May 21, 2025
Rubber India
Overview
On May 21, 2025, Japanese rubber futures saw a slight decline due to an increase in supply from ongoing harvesting, although strong demand for tyres helped limit the drop.
Market Performance
Osaka Exchange (OSE):
October rubber contract fell by 0.8 yen (0.25%) to 322.5 yen ($2.24) per kg.
Shanghai Futures Exchange (SHFE):
September rubber contract decreased by 45 yuan (0.3%) to 14,910 yuan ($2,067.42) per metric ton.June butadiene rubber contract dropped by 60 yuan (0.49%) to 12,075 yuan ($1,674.32) per metric ton.
Supply Outlook
The start of the harvesting season is boosting supply, with May production levels expected to exceed those of last year.
Rubber tapping typically sees lower production from February to May, followed by a peak from June to September.
Nonetheless, production has faced challenges due to bad weather affecting tapping activities.
Weather Impact
Thailand’s meteorological agency has warned of heavy rains from May 23-26, which could lead to flash floods and disrupt harvesting in top-producing regions.
Demand Trends
Despite the increased supply, demand remains resilient:
China’s rubber tyre exports rose by 6.2% year-on-year, reaching 3.03 million tons in the first four months of 2025.
Currency Impact
The Japanese yen weakened slightly against the dollar, trading at 144.31 yen per dollar. A stronger dollar makes yen-denominated rubber less attractive to foreign buyers.
Conclusion
The rubber market is currently balancing between rising supply from the harvesting season and strong demand for tyres. Weather conditions in major producing countries could significantly influence future supply levels.
