Rubber futures slipped to about 203 US cents per kilogram in mid-April, pulling back from their highest levels since 2017, as markets priced in higher supply with the resumption of the tapping season. Downward pressure was compounded by softer oil prices—driven in part by the prospect of renewed US–Iran negotiations—which reduced production costs for synthetic rubber and, in turn, eroded the relative appeal of natural rubber.
Some of the losses were offset by supply disruptions in China, where tapping in the key producing region of Hainan was delayed by a heat wave, temporarily tightening availability. On the demand side, China’s car sales dropped by more than 17% in the first quarter following the removal of tax incentives, weighing on tire output and curbing natural rubber consumption in the world’s largest consumer market.
