Rubber Futures Hovers at 7-Week Low

Rubber futures traded around 240 US cents per kilogram, hovering near their lowest level since September 22, as persistently weak downstream tyre demand continued to weigh on sentiment. This was reflected in China's automotive market, where domestic vehicle sales plunged 26.6% year-on-year in October, extending the decline from September and signaling weaker demand in a key tyre-consuming market. However, tyre manufacturers have recently stepped up raw material purchases following price declines, offering some near-term support, although this appears to reflect restocking rather than a sustained recovery in consumption. On the supply side, rubber production was approaching the end of its seasonal cycle, while the diversion of some raw materials toward concentrated latex production was expected to limit growth in whole latex rubber output.