RubberIndiaOnline

16/01/2025

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19/12/2024

Rubber Price Report – December 19, 2024
Jojo Mathew December 19, 2024

Current Market Overview:
Japanese rubber futures have experienced a slight decline, with the Osaka r May delivery falling by 0.59% to 368.8 yen per kg ($2.39) as of early trading today. This drop reflects ongoing concerns about global demand for rubber, particularly in light of disappointing economic data from China, the world’s largest consumer of the commodity.

Key Factors Influencing Prices:

Global Demand Concerns:
The May rubber on the SHFE also saw a decline, dropping 1.41% to 17,730 yuan ($2,429.47) per metric ton. This decline is attributed to weaker-than-expected consumption data from China, which raises doubts about future demand .

Economic Context:
Recent economic indicators from China have shown unexpected weakness, which could hinder economic growth. This situation is compounded by ongoing tariff threats and the slow impact of Beijing’s fiscal stimulus measures.

Oil Prices and Competition:
Falling oil prices, influenced by the U.S. Federal Reserve’s decision to slow interest rate cuts, add complexity to the rubber market. Natural rubber competes with synthetic rubber, which is derived from crude oil, making fluctuations in oil prices particularly impactful.

Currency Effects:
The Japanese yen has weakened, reaching a one-month low of 154.88 per dollar. This depreciation makes yen-denominated assets more attractive to foreign buyers, providing a cushion against the falling rubber prices driven by global demand concerns.

Market Sentiment:
The Nikkei index has also reacted negatively, falling 1.8% as investors anticipate the outcomes of the Bank of Japan’s upcoming policy meeting .

Conclusion:
The current landscape for Japanese rubber futures is characterized by a combination of declining prices due to global demand concerns and a weaker yen that may help mitigate some of the adverse effects. Investors should remain vigilant as economic conditions evolve, particularly in relation to China’s consumption patterns and global oil prices.

India:
The rubber price outlook for India remains uncertain as the market reacts to both local and international influences. While favorable weather conditions may improve yields, the overall production is likely to remain below previous levels. Stakeholders should be prepared for potential price volatility as global economic conditions evolve and local supply adjusts to changing demand dynamics.

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18/12/2024

Rubber Market Report for Today

Today, Japanese rubber futures experienced a decline for the second consecutive session, primarily influenced by disappointing economic data from China, which raised concerns about demand from the world's largest consumer of rubber.

Market Performance
Osaka May rubber ) fell by 3.6 yen, or 0.97%, settling at 367.4 yen ($2.39) per kg .

SHFE May rubber decreased by 470 yuan, or 2.55%, to 17,950 yuan ($2,464.51) per metric ton.

The February butadiene rubber contract (SHBRv1) also saw a decline, slipping 80 yuan, or 0.59%, to 13,480 yuan ($1,850.78) per metric ton .

January rubber on the SICOM last traded at 193.3 U.S. cents per kg, down 2.0% .

Economic Context
Recent official data from China indicated unexpected weakness in consumption, which poses risks to economic growth amid ongoing tariff threats from the U.S. This has led to concerns that China's policy measures aimed at stimulating growth have not yet yielded significant results. Chinese leaders have agreed to increase the budget deficit to 4% of GDP for the upcoming year, the highest on record, while maintaining a growth target of around 5% .

Supply and Demand Factors

Tyre Demand: There has been a noted decrease in winter demand for tyres, prompting tyre manufacturers to lower their operating rates. Additionally, natural rubber inventories in Qingdao have seen a slight increase, further indicating a supply surplus .

Weather Impact: The Thai meteorological agency reported that the monsoon in Thailand's Gulf and southern regions is expected to weaken, which may affect rubber production in the world's largest rubber-producing country.

Currency Influence
The U.S. dollar was up 0.12% against the yen, trading at 153.65 yen. A weaker yen typically makes yen-denominated assets more attractive to foreign buyers, which can influence market dynamics.

Outlook
The Japanese rubber market is currently facing downward pressure due to weak economic indicators from China and reduced demand in the tyre sector. Market participants are closely monitoring these developments, alongside currency fluctuations and weather conditions in major rubber-producing region

India
In the Indian market, the price of fourth-grade rubber sheets is currently around ₹191 per kg. The Indian rubber market is currently navigating uncertainty due to external economic factors, production challenges, and fluctuating international prices. Traders are advised to stay informed and agile as conditions evolve, particularly concerning demand from China and the impact of weather on local production.

Rubber India

15/09/2024

On this beautiful occasion of Onam, may your heart be filled with joy and your home with laughter. As we celebrate the spirit of togetherness, let us cherish the memories and bonds we share. May the vibrant colors of pookalam and the sweet flavors of the feast remind us of the abundance of love and happiness in our lives. Wishing you and your family a prosperous Onam filled with peace, happiness, and the warmth of cherished moments. Happy Onam! 🌼🌸✨

27/05/2024

ROUT Kerala Rubber Traders

For daily Rubber Price Updates from Kerala, Tripura, Karnataka and from major international markets please subscribe our WhatsApp service. Spot, Future, International prices are updating every hour.