Rubber price today May 19, 2025: Stable price, risk of oversupply from China

World rubber price today May 19, 2025

On the SGX - Singapore exchange, rubber futures prices recorded a significant decrease. The June 2025 contract decreased by 2.10 cents to 173.30 cents/kg. The July contract decreased sharply by 2.90 cents to 171.90 cents/kg. The August and September contracts also decreased by 2.00 and 2.20 cents/kg, respectively.

Meanwhile, TOCOM in Tokyo continued to maintain stable prices for June contracts at 341.70 yen/kg. At SHFE (Shanghai), contracts from May to August were "inactive", staying in the price range of 16,640 - 16,815 yuan/ton.

According to data from the National Bureau of Statistics of China, synthetic rubber output in March 2025 reached 856,000 tons, a sharp increase of 18% over the same period last year. In the first quarter, total output reached 2.33 million tons, an increase of 10.5% over 2024.

Analysts say this is a “hot” growth rate for China’s synthetic rubber industry, mainly due to economic growth expectations and spare demand from manufacturing plants. However, this also poses a serious risk of oversupply, especially when production is exceeding actual demand.

The strong growth of synthetic rubber has put natural rubber under double pressure. On the one hand, international shipping costs remain high, on the other hand, unfavorable weather conditions in key growing regions such as Southeast Asia. In addition, consumption demand in major markets such as the US and Europe has not yet recovered steadily after the pandemic.

The widespread use of synthetic rubber as a substitute in industries is reducing the demand for natural rubber. This is a factor that may cause the natural rubber market to face a downward trend in prices in the coming time if supply and demand are not rebalanced.

Domestic rubber prices: Sideways trend continues

According to the 12:30 pm record from giacaphe.com, the purchase price of latex at major rubber companies across the country has not changed. At Mang Yang Rubber Company, grade 2 to grade 1 latex is purchased at 397 - 401 VND/TSC. The price of mixed latex ranges from 359 - 409 VND/DRC, a slight decrease of 20 VND compared to before.

At Ba Ria Rubber Company, latex prices are still classified according to TSC. The highest level is 452 VND/TSC/kg for latex with TSC of 30 or higher. Levels 2 and 3 are 447 and 442 VND/TSC/kg, respectively, for latex with lower TSC.

For mixed latex, cup latex or coagulated latex with DRC of 50% or more is purchased at 18,000 VND/kg. The type with DRC of 45-50% is priced at 16,700 VND/kg, and coagulated latex with DRC of 35-45% is purchased at 13,500 VND/kg.

Binh Long Rubber Company also maintains stable prices: latex from 386-396 VND/TSC/kg, DRC 60% mixed latex remains at 14,000 VND/kg.

Similarly, at Phu Rieng Rubber Company, the purchase price of grade 1 latex remains at 440 VND/TSC/kg, while mixed latex remains at 400 VND/DRC/kg.

The fact that domestic rubber prices remain stable amid many macroeconomic fluctuations and erratic weather is considered a positive signal. This reflects the production and market management capacity of enterprises in the industry, helping farmers feel secure in their cultivation and ensuring a stable supply for export in the coming time.

Short-term forecasts show that if global demand improves and the weather becomes more favorable, rubber prices may gradually adjust in a more positive direction in the coming time.

Source: https://baoquangnam.vn/gia-cao-su-hom-nay-19-5-2025-giu-gia-on-dinh-nguy-co-du-cung-tu-trung-quoc-3155097.html