Natural Rubber Prices Supply Tightens
Index
On September 2nd, the STR20 price index of the natural rubber market in Qingdao was $1,840/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 some semi-steel and full-steel mills that underwent maintenance at the end of the month have resumed work as planned, and production will gradually resume. Furthermore, some mills in Guangrao have temporarily suspended operations, which has somewhat impacted the resumption of operations at sample mills. Overall, tire production performance weakened slightly at the beginning of the month. As these mills resume operations, operating rates will gradually increase.
Futures and Spot Prices Overview
Market Forecast
Today, the main rubber futures contract saw strong fluctuations. Spot quotes followed the market upwards, and holders offered active bids. The market was unstable, and the market inquiry atmosphere was low. High raw material prices provided strong support.
On the inventory side, Qingdao inventories continued to decline. Although downstream demand has improved only slightly, reduced imports and strong demand purchases will drive further inventory reduction. Combined with the support of macroeconomic factors, rubber prices are expected to continue to consolidate in the short term.
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