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.
