The Natural Rubber market displayed slight strength just before the end of October 2025, as steady downstream recovery was countered by higher supply expectations. In China, trading activity stayed moderate, with tire producers resuming operations after the National Day holidays, providing support in the short term. However, overall momentum was still limited as export demand remained weak and major buyers remained cautious in their procurement.
The downstream Tire production levels in China showed slight improvement with semi-steel tire production up slightly, while all-steel tire production eased slightly in Shandong. Thus, supply-demand balance for Natural Rubber remained stable and stable price developments in the spot market remained intact. Meanwhile, raw material costs showed some softening as cutting resumed in key producing regions, easing some of the cost pressures faced by Natural Rubber processors.
On a worldwide scale, the supply conditions for natural rubber looked moderate. Côte d'Ivoire, as a major exporter, reported a 14.8% year-over-year increase in natural rubber exports in the first three quarters of 2025. The increase in output from Africa, as well as improved weather in Southeast Asia, sustained an ample supply of natural rubber in the international market. Despite the disruptions in production caused by the recent typhoons in parts of Hainan and Yunnan, improved weather conditions have helped stabilize tapping, which provides additional support to supply-side confidence.
Natural rubber futures in Japan posted slight gains in response to further yen weakness against the dollar, attracting buyers from abroad and making OSE rubber contracts more attractive. Even though trading volume increased slightly this week, short-term short-covering activity was bullish, although the speculative side of Natural Rubber volume continues to be quiet. The predominance of stable price action indicates that trader interest is somewhat tentative given the mixed signals from global participants.
The industry witnessed several significant developments that shaped sentiment. ZC Rubber of China made an important and noted development announcing its Arisun EV tire launched for the North America market, which featured a clear diversification in downstream usage. SARIB of Malaya also announced plans to modernize Natural Rubber estates and increase productivity. Bridgestone and Michelin revised their strategies to navigate difficult global tire markets. For the most part, the market remained in a period of narrow consolidation with limited tire demand holdings, but also strong supply fundamentals.
According to ChemAnalyst forecast, there is an expectation of Natural Rubber prices exhibiting a consolidated movement in the next sessions. With inventories decreasing and producers running steady operations Natural Rubber prices are likely to continue fluctuating within a stable range.
