January 14, 2025
Rubber India
Market Overview
Japanese rubber futures have reached a one-week high, continuing their upward trend for the fourth consecutive session. The increase is primarily driven by rising oil prices and supply concerns stemming from adverse weather conditions in Thailand, a leading rubber producer.
Key Market Movements
Osaka June delivery rose by 5.9 yen (1.6%) to 374.5 yen ($2.38) per kg, peaking at 375.2 yen earlier in the session, the highest since January 6, 2025.
SHFE March delivery increased by 160 yuan (0.94%) to 17,215 yuan ($2,348.47) per metric ton.
February butadiene rubber also saw a rise of 140 yuan (0.99%) to 14,245 yuan ($1,943.30) per metric ton.
SICOM February delivery last traded at 193.1 U.S. cents per kg, up 0.9%
Influencing Factors
Oil Prices: Although oil prices slipped slightly at market open, they remain near four-month highs. The market is reacting to new sanctions on Russian oil, which have prompted Chinese and Indian buyers to seek alternative suppliers. This situation has raised concerns about supply risks, which in turn affects natural rubber prices as it competes with synthetic rubber derived from crude oil [3].
Weather Conditions: The northeast monsoon in Thailand is expected to strengthen, bringing thundershowers and heavy rains from January 16-19. This adverse weather could further threaten rubber supplies from the region, contributing to the price increases.
Currency Impact: The Japanese yen remains under pressure, trading at 157.54 per dollar. A weaker yen makes yen-denominated assets more attractive to overseas buyers, potentially boosting demand for Japanese rubber products.
Future Outlook
The rubber market is likely to continue reacting to fluctuations in oil prices and weather conditions in key production areas. The ongoing demand for rubber in various industries, particularly in automotive and construction, will also play a crucial role in shaping market trends in the coming months.
