Rubber Futures at Over 5-Month High

2025-09-05 11:49 By Luisa Carvalho 1 min. read

Rubber futures continued to climb to surpass 178 US cents per kilogram, reaching the highest level since early April, amid growing supply concerns from weather-related disruptions in key producing regions like Thailand, Vietnam and China.

Heavy seasonal rains in Southeast Asia have intensified in recent weeks due to more frequent tropical storms, a pattern increasingly associated with climate change.

The rubber market is being reshaped as long-standing supply constraints—including aging plantations, workforce shortages, and climate risks—converge with accelerating demand from the electric vehicle revolution.

EVs offer both challenges and opportunities for the rubber industry—they reduce crude oil demand but require more natural rubber per vehicle.

However, a cautious restocking strategy in China, coupled with sluggish EV adoption, has weakened demand and intensified inventory overhang.



News Stream
Rubber Futures Up to Near 1-Month High
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Rubber futures traded around 195 US cents per kilogram, hovering near the lowest in over a week, as concerns about the Middle East conflict’s impact on demand offset support from higher oil prices and tight supply. Industries such as tire manufacturing could face higher input costs due to disrupted supply chains, potentially reducing demand for rubber-intensive products. Meanwhile, the supply outlook remained constrained by seasonal reduced output. Major producers in Southeast Asia are currently in their low-production “wintering” season, which runs from February to May, before harvesting typically ramps into late summer.
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