Rubber Futures Near 2013 Highs

Rubber futures rose to around 259 US cents per kilogram, approaching their highest level since early 2013, driven by persistent supply concerns. Flooding in Thailand, a major producer, has disrupted output and operations at several auto parts suppliers, affecting deliveries to automakers. Heavy rainfall across producing regions is expected to persist until mid-October. Adding to weather-related concerns, the World Meteorological Organization said El Niño is nearly certain to continue through February 2027, posing further risks to production. Meanwhile, demand remained subdued in China, where semi-steel and all-steel tire production rates fell sharply amid holiday-related factory shutdowns, weak orders, and cautious purchasing. Easing oil prices also exerted downward pressure, lowering synthetic rubber production costs and reducing the appeal of natural rubber as a substitute.