Rubber prices continue to rise due to supply concerns

Rubber prices on major exchanges continued to rise to multi-month highs due to lingering concerns about supply.

World rubber price

In the most recent trading session, the price of RSS 3 rubber at the Osaka Exchange (OSE) - Japan continued to increase by 5.4 yen/kg, to 384.4 yen/kg - for the September delivery contract.

The September natural rubber contract on the Shanghai Futures Exchange (SHFE) – China was traded at 16,425 yuan/ton, up 0.8% (equivalent to an increase of 130 yuan/ton) compared to yesterday.

According to tradingeconomics, the global rubber market continues to be supported by supply concerns amid adverse weather conditions. Super Typhoon Yagi has severely impacted major producers in Southeast Asia, including Thailand, Vietnam and Malaysia, during a crucial supply period.

Rising oil prices also supported rubber prices, although the demand outlook remained bleak as China, the world's biggest buyer, continued to report less-than-optimistic economic data, raising uncertainty about future demand.

In the week ending September 19, the operating rate of semi-steel tire factories in China was 57.41%, down 3.77% from the previous week. However, the operating rate of all-steel tire factories was 77.08%, up 2.63% from the previous week.

Vietnam Rubber Magazine quoted Future Market Insights as saying that demand for synthetic polyisoprene rubber could be driven by its widespread use in the production of tires, belts, footwear and medical accessories such as medical gloves and medical balls.

The global market is expected to expand at a CAGR of 6.2% from 2022 to 2032. The East Asian market will continue to dominate. Due to these factors, the global synthetic polyisoprene rubber market is expected to reach USD 1.3 billion by 2032.

Synthetic polyisoprene rubber is widely used as a base material in tire manufacturing. In addition, the demand for synthetic polyisoprene rubber has increased due to the increased awareness of employers regarding the use of industrial gloves and the increasing demand for medical gloves.

In addition to footwear, synthetic polyisoprene rubber is also used in the production of adhesives and sealants, belts and other products in the industrial and construction industries.

Domestic rubber price

Domestically, the purchase price of raw rubber latex was adjusted to increase to the highest level of 410 VND/degree.

Accordingly, Ba Ria Rubber Company quoted the purchase price of latex at around 404 - 414 VND/TSC, an increase of 5 VND/TSC compared to the last quote. The price of DRC coagulated latex from 35 to 44% also increased by 100 VND/kg, at 14,800 VND/kg; raw latex was 18,400 - 19,800 VND/kg, an increase of 200 VND/kg.

At other companies, prices remain stable, such as Phu Rieng Rubber Company, which quoted mixed latex at 360 VND/DRC and 400 VND/TSC for water latex.

The purchase price of Mang Yang Rubber Company's latex is 360 - 402 VND/TSC, while Binh Long Rubber Company's is 383 - 393 VND/TSC.

Source: https://baodaknong.vn/gia-cao-su-hom-nay-23-9-gia-cao-su-tiep-tuc-tang-do-lo-ngai-ve-nguon-cung-229962.html