FX.co ★ Rubber Futures at Over 1-Month Low

Rubber futures have recently dipped below 170 US cents per kilogram, nearing their lowest point since early October. This decline is largely attributed to supply chain interruptions in the global automotive industry, which have cast uncertainty over demand forecasts. Contributing to these disruptions are escalating tensions between Dutch semiconductor company Nexperia and its subsidiary in China, potentially prompting some European car manufacturers to temporarily cease operations. Consequently, the reduced pace in vehicle production is anticipated to dampen demand for rubber, particularly for use in tires. This situation is exacerbated by the slowdown in industrial activity within China, the leading consumer of rubber. From a supply perspective, favorable weather conditions in the primary rubber-producing areas of Southeast Asia have ensured stable tapping operations, which is expected to enhance raw material production as the region approaches its peak harvesting season. Furthermore, Côte d’Ivoire, a major exporter out of Africa, has reported a significant 14.8% increase in natural rubber exports during the first nine months of 2025.