Rubber Futures Near 2-Month Low

2026-07-02 08:33 By Kyrie Dichosa 1 min. read

Rubber futures fell below 210 US cents per kilogram in early July, near their lowest level in almost two months, as a weakening outlook for Chinese auto demand and improving supply prospects weighed on prices.

Concerns over tire demand intensified after BYD's domestic sales fell 22% year-on-year in June, while the China Passenger Car Association lowered its 2026 car sales forecast to an 11% decline from a previously projected 1% drop.

Meanwhile, rubber output increased across major Southeast Asian producers, including Thailand, Indonesia, and Vietnam.

Indonesia and Vietnam are entering their seasonal production upswing, with favorable weather boosting latex yields and tapping activity, further improving supply prospects.

Oil prices also extended their losses, remaining close to pre-conflict levels and adding pressure to natural rubber, which competes with petroleum-based synthetic rubber.



News Stream
Rubber Futures Near 2-Month Low
Rubber futures fell below 210 US cents per kilogram in early July, near their lowest level in almost two months, as a weakening outlook for Chinese auto demand and improving supply prospects weighed on prices. Concerns over tire demand intensified after BYD's domestic sales fell 22% year-on-year in June, while the China Passenger Car Association lowered its 2026 car sales forecast to an 11% decline from a previously projected 1% drop. Meanwhile, rubber output increased across major Southeast Asian producers, including Thailand, Indonesia, and Vietnam. Indonesia and Vietnam are entering their seasonal production upswing, with favorable weather boosting latex yields and tapping activity, further improving supply prospects. Oil prices also extended their losses, remaining close to pre-conflict levels and adding pressure to natural rubber, which competes with petroleum-based synthetic rubber.
2026-07-02
Rubber Futures Slide Toward Two-Month Low
Rubber futures extended their decline below 210 US cents per kilogram in late June, approaching their lowest level since April, as expectations of stronger supply weighed on the market. Output increased across major Southeast Asian producers, including Thailand, Indonesia, and Vietnam, following the wintering season. Analysts also noted that Indonesia and Vietnam are entering their seasonal production upswing, with favorable weather accelerating fresh rubber output and tapping activity, further improving supply prospects. Meanwhile, rising synthetic rubber production added pressure by increasing the availability of substitute materials. Providing some support, oil prices edged higher following the recent US-Iran exchange of strikes, potentially increasing the cost of synthetic rubber, a crude oil-derived substitute for natural rubber.
2026-06-29
Rubber Futures Ease
Rubber futures fell to around 224 US cents per kilogram, hitting a two-week low, helped by softer oil prices and expectations of improved supply availability. The main driver was Southeast Asia’s gradual seasonal production ramp-up, despite uneven weather conditions in producing regions due to rainfall and drought. Another factor was a report of increased Thai rubber shipments to China. In the meantime, the Association of Natural Rubber Producing Countries (ANRPC) projected global natural rubber production to rise by 2.4% to 15.34 million tonnes in 2026, reinforcing prospects of higher output. Meanwhile, demand signals from the auto sector remain mixed. Total EU car sales rose 3.2% year-on-year to 955 units in May, while China’s vehicle sales fell 2.1% to 2.63 million units.
2026-06-25