Rubber futures climbed above 206 US cents per kilogram, nearing levels last seen in early 2017. The rally is being driven in part by rising crude oil prices amid a fragile ceasefire in the Middle East and the continued closure of the Strait of Hormuz. Higher oil prices raise the cost of producing synthetic rubber, making natural rubber comparatively more attractive and often lifting its demand.
Prices are also being supported by tight raw material supply in major Southeast Asian producers, where output is seasonally constrained during the low-production “wintering” period from February to May. In this phase, rubber trees shed their leaves and enter a resting period, significantly reducing latex yields.