Slight decrease on exchanges

Rubber prices today recorded a slight decrease on the exchanges, but still increased significantly compared to last week.

World market

At the close of trading on December 7, the price of RSS 3 rubber for delivery in March 2025 at the Osaka Exchange (OSE) in Japan reached 378 yen/kg, down slightly by 0.1% compared to the previous trading session but up 1.2% (4.6 yen/kg) compared to the end of last week.

On the Shanghai Commodity Exchange (SHFE) - China, the price of natural rubber contract for January 2025 delivery stood at 18,580 yuan/ton, down 0.8% from the previous day but still up 3% (535 yuan/ton) last week.

In Thailand, the price of RSS 3 rubber contract for delivery in January 2025 reached 85.8 Baht/kg, up 4.2% last week.

Supply concerns have been exacerbated by heavy monsoon rains in Malaysia’s southern Johor state in the past few days and heavy rains in Thailand, the world’s biggest producer of natural rubber. However, traders said buyers were not actively buying rubber due to high prices.

The Malaysian News Agency (Bernama) reported that rubber industry expert Denis Low said the rubber market could continue to rise next week due to tight supplies following recent floods in Malaysia and Thailand.

Although the two Southeast Asian countries regularly experience annual monsoon rains, scientists say climate change is causing increasingly extreme weather events, increasing the risk of severe flooding, he said.

“Therefore, there will be a need for storage and traders may not want to be caught in a supply shortage,” Mr Low said.

According to the Rubber Authority of Thailand (RAT), massive flooding in southern Thailand could cause around 20 billion baht in damage as rubber farmers are unable to tap rubber for at least a month or longer.

Domestically, rubber prices were stable over the weekend.

Meanwhile, several rubber-producing states in Malaysia have also been affected by floods due to continuous heavy rains caused by the northeast monsoon.

In addition, the expert said geopolitical tensions and uncertainty related to potential US tariffs on Chinese goods also contributed to increased market volatility and affected trading sentiment.

“Such uncertainties increase volatility, leading to caution and anxiety. This situation both pushes prices of some commodities beyond expectations and holds back prices of others,” he added.

On the other hand, the Malaysian Rubber Glove Manufacturers Association (MARGMA) said that as the La Niña weather phase approaches, heavy rainfall and flooding in Southeast Asian countries, especially Malaysia and Thailand, will continue to disrupt the supply of natural rubber.

“However, the upside could be capped by a slowdown in US services sector activity, as well as US-China trade tensions and increased tariffs on Chinese goods,” MARGMA said.

The association also noted that the delay in the implementation of the European Union Deforestation Regulation (EUDR) may provide short-term relief to the market. However, the long-term impacts of the EUDR could impact the demand for sustainable rubber and thus global rubber prices.

Rubber prices may continue their upward trend next week, while keeping a close eye on developments in regional rubber futures markets, the strength of the ringgit against the US dollar and benchmark crude oil prices.

Domestic market

Domestically, rubber prices were stable over the weekend.

Accordingly, Ba Ria Rubber Company is quoting the purchase price of liquid latex at 437 - 447 VND/TSC; DRC coagulated latex (35 - 44%) is 13,300 VND/kg; raw latex fluctuates between 16,500 - 17,800 VND/kg.

Mang Yang Rubber Company listed the purchase price of liquid latex at around 434 - 438 VND/TSC, mixed latex at 387 - 441 VND/DRC.

At Phu Rieng Rubber Company, the purchase price of mixed latex is 415 VND/DRC, and liquid latex is 455 VND/TSC.

Source: https://baodaknong.vn/gia-cao-su-hom-nay-8-12-giam-nhe-tren-cac-san-giao-dich-236329.html