Rubber Futures Rebound

2026-07-07 09:30 By Luisa Carvalho 1 min. read

Rubber futures rose to near 214 US cents per kilogram, up from recent two-month lows of $208.6 cents per kilogram, on short covering and rising prices of crude oil.

Because synthetic rubber is made from petroleum, higher oil prices increase its production costs, encouraging manufacturers to switch to natural rubber.

At the same time, Liberia's ban on raw natural rubber exports fueled concerns over tighter near-term supply, with global inventories already running low.

Southeast Asia, the world's top rubber-producing region, is currently in its mid-season harvesting period, but heavy monsoon rains have been disrupting operations.

However, persistent weak demand prospects in top buyer China limited the upside.

Chinese broker Gouxin Futures said the semi-steel tire segment remains under pressure as manufacturers contend with weak new-order expectations and rising inventories.

It added that some manufacturers have begun maintenance shutdowns this month, reducing near-term rubber demand.



News Stream
Rubber Futures Rebound
Rubber futures rose to near 214 US cents per kilogram, up from recent two-month lows of $208.6 cents per kilogram, on short covering and rising prices of crude oil. Because synthetic rubber is made from petroleum, higher oil prices increase its production costs, encouraging manufacturers to switch to natural rubber. At the same time, Liberia's ban on raw natural rubber exports fueled concerns over tighter near-term supply, with global inventories already running low. Southeast Asia, the world's top rubber-producing region, is currently in its mid-season harvesting period, but heavy monsoon rains have been disrupting operations. However, persistent weak demand prospects in top buyer China limited the upside. Chinese broker Gouxin Futures said the semi-steel tire segment remains under pressure as manufacturers contend with weak new-order expectations and rising inventories. It added that some manufacturers have begun maintenance shutdowns this month, reducing near-term rubber demand.
2026-07-07
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