Rubber Futures Trade Range-Bound

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. 47 million vehicles, marking a tenth consecutive monthly decline, although the pace of contraction eased.

2% as automakers increasingly looked to overseas markets to offset intense competition at home.