Natural Rubber Price Trends Hold Steady
Index
On September 1st, the STR20 price index of the natural rubber market in Qingdao was $184/ton, stable compared to the previous trading day.
Market Analysis
Futures Market:
Spot Market
Supply:
Overseas: Heavy rains in northern and southern Thailand, accompanied by typhoons, have tightened raw material supply, prompting factories to purchase at high prices, leading to a continued rise in the average price of raw materials. Typhoon-affected Vietnamese production areas experienced heavy nighttime rainfall, hindering tapping operations and supporting rising raw material purchase prices.
Domestic: Continuous rainfall in Yunnan's production areas has hampered tapping, tightening raw material supply and driving a slight increase in raw material prices. The impact of the typhoon in Hainan has weakened, and tapping operations have gradually resumed. However, given the potential for continued weather fluctuations in these production areas, some processing plants are raising prices to ensure production and fulfillment of orders, further driving up raw material prices.
On the demand side: It is understood that most full-steel tire manufacturers are currently operating steadily. Some companies with planned maintenance at the end of the month are continuing production to build some inventory. Currently, inventories are low for most companies, and foreign trade orders remain healthy. Overall order performance at the beginning of the next month is relatively similar to August, providing some support for production.
Futures and Spot Prices Overview
Market Forecast
Today, the main rubber futures contract fluctuated and weakened, with the center of gravity unstable and holders cautious in their bids. Rainfall in producing areas has hindered the smooth release of raw materials, maintaining support from the cost side. Spot inventories continue to decline, strengthening fundamental support and providing some support for rubber prices.
The approaching military parade in China will have some impact on downstream operating rates, but with the overall strengthening commodity market, rubber prices are expected to remain relatively strong and volatile.
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