Rubber prices have slipped across Japan, China, and Singapore, with a wave of new supply and international trade tweaks sending futures tumbling for a third consecutive day.
Japanese rubber futures on the Osaka Exchange dropped 0.69% to 317.5 yen per kilogram, echoing declines in Chinese and Singapore contracts. The dip is fueled by expectations of stronger supply – both natural and butadiene rubber futures in China softened after news of rising stockpiles. To respond, China and Thailand kicked off a zero-tariff pilot, shipping 400 tons of rubber and aiming to pare down costs and streamline flows. If expanded, this could see monthly rubber exports soar past 10,000 tons. Meanwhile, stable US dollar-yen rates and higher oil prices may keep synthetic rubber costs elevated, since those track crude. On another front, Mexico introduced a new 50% tariff on Asian auto imports, which could temporarily boost demand for Chinese vehicles and may give a short-run lift to tire orders – even as prices trend lower.
For markets: Supply and new trade deals set the tone.
Rubber futures are on a losing streak across Asia, with Singapore’s September contract down 1.7%. Signs point to broad downward pressure, as supply outpaces demand and major partners rethink trade terms. Investors focused on rubber producers or auto-linked sectors will want to gauge how fast these pilot trade agreements can grow – and if Mexico’s tariff can spark more than a fleeting blip in rubber product demand.
The bigger picture: Flexible supply chains reshape the game.
Moves like China and Thailand’s zero-tariff pilot signal Asia’s push for leaner supply chains and lower costs. With rubber’s fate entwined with oil prices and currency shifts, global commodity markets are showing just how linked everything is. As trade flows shift and exporters hunt for new outlets, tire and car makers may face both new growth opportunities and bumps in the road.
Source: finimize