Rubber Approaches 4-Week Low

2026-08-04 08:32 By Kyrie Dichosa 1 min. read

Rubber futures fell to around 211 US cents per kilogram in early August, approaching a four-week low, as rising seasonal supply and persistently weak tyre demand weighed on prices.

Southeast Asia's peak tapping season continued to boost rubber output, although the risk of El Niño-related production disruptions is expected to increase as the season progresses.

Meanwhile, tyre demand is likely to remain seasonally weak through mid-August, according to Guoyuan Futures, with China's Vehicle Inventory Alert Index climbing to 61.1% in July, remaining above the 50% threshold that signals excess inventory.

Elevated inventories could prompt automakers to scale back production, weighing on natural rubber demand.

Elsewhere, oil prices rebounded modestly after the previous session's sharp decline, lending limited support to natural rubber as higher crude prices reduce the competitiveness of petroleum-based synthetic rubber.



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Rubber Approaches 4-Week Low
Rubber futures fell to around 211 US cents per kilogram in early August, approaching a four-week low, as rising seasonal supply and persistently weak tyre demand weighed on prices. Southeast Asia's peak tapping season continued to boost rubber output, although the risk of El Niño-related production disruptions is expected to increase as the season progresses. Meanwhile, tyre demand is likely to remain seasonally weak through mid-August, according to Guoyuan Futures, with China's Vehicle Inventory Alert Index climbing to 61.1% in July, remaining above the 50% threshold that signals excess inventory. Elevated inventories could prompt automakers to scale back production, weighing on natural rubber demand. Elsewhere, oil prices rebounded modestly after the previous session's sharp decline, lending limited support to natural rubber as higher crude prices reduce the competitiveness of petroleum-based synthetic rubber.
2026-08-04
Rubber Remains Range-Bound
Rubber futures traded around 211 US cents per kilogram, continuing to move within a tight range since early this month amid the absence of a clear market direction. Trading remained subdued as lower oil prices following a pause in hostilities between the US and Iran reduced the cost advantage of natural rubber over synthetic alternatives. Demand concerns also persisted as the EU's anti-dumping duties on Chinese car and light truck tires continued to weigh on the outlook by raising the risk of weaker Chinese tire exports and lower consumption. Meanwhile, ongoing supply constraints in Southeast Asia due to El Niño continued to provide underlying support, offsetting some of the downward pressure on prices. Elsewhere, Thailand's natural rubber exports, excluding compound rubber, totaled 1.203 million tonnes in the first half of 2026, down 13% from a year earlier.
2026-07-28
Rubber Futures Ease
Rubber futures eased to around 217 US cents per kilogram in late July, trading within a narrow range since early this month, as weather-related disruptions in key rubber-producing countries had little impact on the broader seasonal increase in supply. Thailand, the world's largest rubber producer, has entered its peak tapping season, with output in the south beginning to recover as rainfall eased in late June and early July. Adding to downside pressure, EU anti-dumping tariffs on Chinese tire imports fueled concerns over weaker demand for natural rubber, while China's slowing economy and a ninth consecutive monthly decline in vehicle sales in June further dampened the demand outlook. Meanwhile, elevated oil prices limited some losses by making synthetic rubber more expensive, boosting the competitiveness of natural rubber.
2026-07-20