Rubber Futures Rebound

Rubber futures rose to around 248 US cents per kilogram, extending a rebound from a seven-week low, as concerns over El Niño-related weather disruptions provided some support. However, analysts cautioned that the weather premium could fade if seasonal production proceeds normally and no large-scale supply cuts materialise. Thailand, the world's leading natural rubber producer, is also emerging from the rainy season and entering its peak harvesting period, raising expectations of increased output and greater supply availability. Meanwhile, persistently weak downstream demand added pressure, with China's passenger vehicle sales projected to fall below 19 million units this year for the first time since 2014, highlighting the slowdown in a major automotive market. Weaker vehicle sales could further constrain automobile production and, in turn, demand for rubber tyres.