Rubber Daily Report: Volatile Market (May 25)
Index
On May 25th, the Qingdao STR20 natural rubber price index was $2270/ton, up $10/ton from the previous trading day.
Market Analysis
Futures Market:
Spot Market
Supply Side:
International: Thailand has entered its rainy season, with localized rainfall temporarily affecting rubber tapping. However, the trend of increasing raw material supply continues, leading to increased pressure on prices from factories.
Vietnam's producing areas experienced intermittent rainfall, but short-term showers have not significantly disrupted tapping operations. Vietnam is currently in the full-scale tapping phase, with new rubber production further increasing month-on-month. However, the market generally expects a concentrated surge in raw material supply around June.
Domestic: Rainy weather in Yunnan's producing areas has hampered raw material production. Coupled with the continued rush to purchase concentrated latex, raw material purchase prices are consolidating within a range.
Hainan's producing areas have relatively favorable weather, with tapping gradually resuming. The seasonal increase in raw material production is proceeding normally. Some processing plants are maintaining a premium purchase price to ensure order fulfillment and production needs.
On the demand side:
It is understood that production at all-steel tire manufacturers undergoing maintenance is gradually resuming, which will have a certain positive impact on the overall operating rate of all-steel tires. However, as we enter late May, the pressure of domestic and international sales will further increase, and some tire companies will still have production stoppages or restrictions, limiting the overall increase in production capacity.
Futures and Spot Prices Overview
Market Forecast
Today, futures prices fluctuated within a range, while spot prices for natural rubber remained relatively stable. Supply from domestic and international producing areas is entering a seasonal upward trend. Supported by restocking demand from overseas factories, cost support remains, and downstream companies are actively restocking on dips. In the short term, rubber prices may fluctuate within a range.
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