Rubber Consolidates Near 2-1/2-Year High

2026-06-22 13:31 By Agna Gabriel 1 min. read

Rubber traded around 230 US cents per kilogram, holding near its highest level since late 2023 as markets balanced optimism over a potential US-Iran peace agreement with concerns that an El Niño weather pattern could disrupt production.

Weather risks and firm demand from the automotive sector have supported prices, keeping sentiment positive.

Demand signals from the auto sector remain mixed but broadly supportive.

China’s vehicle sales rose to 2.63 million units in May, driven by passenger cars, while global tire makers continued expanding.

Sailun Tire announced a $1.14 billion tire project in Egypt, adding major capacity for passenger, truck, and off-road tires.

Michelin remained the world’s most valuable tire brand, while Giti Tire ranked as the fastest-growing.

Pirelli also extended its Formula 1 tire supply deal through 2028, reinforcing long-term demand visibility for the rubber industry.



News Stream
Rubber Consolidates Near 2-1/2-Year High
Rubber traded around 230 US cents per kilogram, holding near its highest level since late 2023 as markets balanced optimism over a potential US-Iran peace agreement with concerns that an El Niño weather pattern could disrupt production. Weather risks and firm demand from the automotive sector have supported prices, keeping sentiment positive. Demand signals from the auto sector remain mixed but broadly supportive. China’s vehicle sales rose to 2.63 million units in May, driven by passenger cars, while global tire makers continued expanding. Sailun Tire announced a $1.14 billion tire project in Egypt, adding major capacity for passenger, truck, and off-road tires. Michelin remained the world’s most valuable tire brand, while Giti Tire ranked as the fastest-growing. Pirelli also extended its Formula 1 tire supply deal through 2028, reinforcing long-term demand visibility for the rubber industry.
2026-06-22
Rubber Futures at Near 2-Week High
Rubber futures rose further to surpass 231 US cents per kilogram, near the highest since early June, amid ongoing weather-related supply concerns. Major Asian rubber producers, including Thailand and Vietnam, are currently affected by seasonal heavy rainfall associated with the monsoon period, which is disrupting tapping activities and also curbing output. Rubber tapping is highly weather-sensitive, as heavy rain reduces tapping hours and delays latex collection, even during the May-to-October peak season when output would normally rise under more favourable conditions. Meanwhile, lower oil prices linked to the anticipated US-Iran deal limited the upside, making synthetic rubber more competitive and weighing on demand for natural rubber.
2026-06-17
Rubber Prices Rebound
Rubber futures rose to around 225 US cents per kilogram in mid-June, rebounding from a two-week low, supported by persistent supply concerns. Although major producers including Thailand, Indonesia, and Malaysia are in their main tapping season (May–October), which typically boosts overall supply due to more favourable growing conditions, forecasts of isolated but very heavy rainfall across northern Thailand, Myanmar, Laos, and northern Vietnam have raised concerns, as prolonged wet conditions can disrupt rubber tapping and limit short-term output. Meanwhile, a US-Iran peace deal has pushed oil prices lower, which could weigh on natural rubber demand as cheaper crude reduces synthetic rubber production costs, making substitutes more competitive. However, the market is more focused on the potential return of rubber demand from the Middle East following the preliminary agreement to end the war.
2026-06-15