Rubber is down by 5.2%

Rubber futures have eased in recent days to around 237 US cents per kilogram, their lowest level in more than a week, dampened by softer tyre demand from top buyer China. Analysts at Chaos Ternary Futures Research Institute said average natural rubber purchases by tyre manufacturers declined last week amid rising raw material costs, partly due to higher oil prices. Further declines are expected ahead as some companies plan holiday closures ahead of National Day and Mid-Autumn Festival. Geopolitical tensions in the Middle East and expectations of tighter monetary policy from major central banks also clouded the demand outlook. However, elevated oil prices and concerns over tight supply provided some support as Southeast Asia’s peak tapping season draws to an end. Expectations of a strengthening El Niño in Q4 have added to supply risks, as hotter and drier conditions in key producing countries such as Thailand and Indonesia could reduce latex yields.

Rubber decreased 5.2% to 236.9 USD Cents / Kg

Rubber futures climbed above 249 US cents per kilogram in September, hitting their highest level since 2013, supported by signs of tightening supplies. Indonesia’s natural rubber exports declined 21% year-on-year in the first seven months of 2026, according to Qinrex, raising concerns over tighter supply from one of the world’s leading producers. El Niño, ongoing haze, and forest fires are expected to further constrain Indonesian rubber output in the coming months. In Thailand, heavier rainfall is expected through mid-September, which could further disrupt tapping activity and reduce latex collection. Meanwhile, the end of Southeast Asia’s peak tapping season in September is expected to further tighten regional supplies. Adding to the upward pressure, crude oil prices continued to surge amid escalating tensions in the Middle East, raising production costs for synthetic rubber and making natural rubber relatively more attractive as a substitute.