Rubber futures slip near 230 US cents/kg on profit-taking
Rubber futures traded around 230 US cents per kilogram after reaching the highest level since 2013, with gains capped by softer tire demand signals and profit-taking.
Rubber futures traded around 230 US cents per kilogram, in likely profit-taking after reaching their highest level since 2013.
The recent surge was driven by concerns over supply risks, which remained elevated amid intermittent rainfall in Thailand, the world’s largest natural-rubber producer, disrupting tapping activity, while the end of Southeast Asia’s peak tapping season in September is expected to further reduce supplies.
The outlook for a strengthening El Niño in Q4 has also raised concerns over rubber supply, as hotter and drier conditions could reduce latex yields across major Southeast Asian producing regions.
ANRPC data also showed that consumption is forecast to reach 15.36 million tons, marginally exceeding projected production of 15.28 million tons.
Meanwhile, higher vehicle inventories among Chinese dealers pointed to softer demand for tires, capping gains.