FX.co ★ Rubber Futures Off 7-Month Highs

Rubber futures have declined by over 4%, settling around 172 US cents per kilogram. This comes after a recent surge pushed prices to a seven-month peak of 180 US cents on December 1. Market participants are balancing the impacts of supply disruptions due to significant rainfall and flooding in ASEAN-producing nations against the backdrop of tepid demand. Additionally, the Association of Natural Rubber Producing Countries (ANRPC) forecasts a modest increase in global natural rubber production by 1.3% year-on-year, reaching 14.892 million tonnes in 2025. Concurrently, demand is anticipated to grow by 0.8% to 15.565 million tonnes, resulting in a more constrained supply-demand equilibrium.