FX.co ★ Rubber Futures Edge Lower

Rubber futures slipped to around 203 US cents per kilogram, retreating from the recent one-year high of 205 US cents, as rising inventories in China weighed on prices. At the same time, local brokers highlighted that production at Chinese tire manufacturers has yet to return to pre-Lunar New Year levels. The decline was partly offset by firmer oil prices amid the conflict in the Middle East and by seasonal supply constraints. Across the main producing region of Southeast Asia, the February–May period marks the low-output “wintering” season, when latex yields naturally decline. In addition, heavy rainfall in key producers such as Thailand and Indonesia has further tightened the availability of raw materials.