Rubber Futures Rise

Rubber futures rose above 241 US cents per kilogram in late September, moving back toward the 13-year high reached earlier this month, as supply concerns supported prices. In Thailand, heavy rainfall disrupted tapping in some production areas, contributing to elevated raw-material costs, with cup-lump prices rising 44.56% year-on-year to 73.8 THB/kg as of September 21. Although rainfall in northern and northeastern Thailand has recently eased, potentially improving immediate tapping conditions, El Niño-related weather risks could pose a longer-term threat to rubber production. Signs of tighter availability were also evident in China, where natural rubber imports fell 6.7% year-on-year to 486,000 tonnes in August, the lowest level for the month in six years, while inventories in Qingdao declined by 17,400 tonnes in the week of September 18. Meanwhile, lower crude oil prices are making synthetic rubber cheaper, potentially limiting gains in natural rubber.