Rubber Futures Near 2-Week High

2026-08-14 08:58 By Kyrie Dichosa 1 min. read

Rubber futures rose to around 222 US cents per kilogram in mid-August, near a two-week high, as higher oil prices supported natural rubber by making crude-based synthetic rubber less competitive.

However, gains were capped by improving supply prospects, with Malaysia’s natural rubber production jumping 31.5% month-on-month in June.

The increase reflected the peak harvesting season, which typically runs from June through September.

China remained the largest destination for Malaysian natural rubber exports, accounting for 55.8% of total shipments, highlighting its importance to regional demand.

Still, weaker Chinese auto demand continued to weigh on the outlook, with subdued tyre demand and elevated vehicle inventories.

Meanwhile, longer-term supply concerns offered support, as Indonesia, the world’s second-largest rubber producer, saw farmers increasingly switch from rubber to palm oil, reducing production capacity and potentially tightening global supplies.



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Rubber Futures Near 2-Week High
Rubber futures rose to around 222 US cents per kilogram in mid-August, near a two-week high, as higher oil prices supported natural rubber by making crude-based synthetic rubber less competitive. However, gains were capped by improving supply prospects, with Malaysia’s natural rubber production jumping 31.5% month-on-month in June. The increase reflected the peak harvesting season, which typically runs from June through September. China remained the largest destination for Malaysian natural rubber exports, accounting for 55.8% of total shipments, highlighting its importance to regional demand. Still, weaker Chinese auto demand continued to weigh on the outlook, with subdued tyre demand and elevated vehicle inventories. Meanwhile, longer-term supply concerns offered support, as Indonesia, the world’s second-largest rubber producer, saw farmers increasingly switch from rubber to palm oil, reducing production capacity and potentially tightening global supplies.
2026-08-14
Rubber Holds in Tight Range
Rubber futures traded around 219 US cents per kilogram in mid-August, remaining range-bound since early July amid a lack of clear market direction. Higher oil prices provided some support to natural rubber by reducing the competitiveness of crude-based synthetic rubber, as concerns over the reopening of the Strait of Hormuz underpinned crude prices. However, persistent weakness in China’s domestic auto market, the world’s top rubber consumer, continued to cap gains amid concerns over tyre demand and rubber consumption. Domestic car sales fell 21.1% year-on-year in July to 1.47 million vehicles, marking a tenth consecutive monthly decline, although the pace of contraction eased. Meanwhile, vehicle exports surged 88.2% as automakers increasingly looked to overseas markets to offset intense competition at home.
2026-08-12
Rubber Trades Sideways
Rubber futures traded around 218 US cents per kilogram in early August, remaining range-bound 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