FX.co ★ Rubber Futures Push Toward 2015-Highs

Rubber futures traded just above 191 US cents per kilogram, hovering near their highest level since April 2015, supported in part by stronger crude oil prices, which make synthetic rubber alternatives less competitive. At the same time, supply concerns remained in focus. Most major rubber-producing regions in Southeast Asia, with the exception of Thailand, have largely wrapped up tapping activities as plantations move into the off-season, tightening the availability of raw material. Rubber trees typically undergo a short tapping window in late January, followed by a period of lower output from February through May, before production ramps up during the main harvest season, which lasts until September. On the demand side, rubber consumption is expected to ease this week and next, as Chinese tyre manufacturers temporarily shut factories for the Lunar New Year holidays.