Rubber traded at around 230 US cents per kilogram, hovering near its highest level since late 2023 as markets weighed optimism over a potential US–Iran peace agreement against concerns that an El Niño weather pattern could disrupt production. Weather-related supply risks, combined with solid demand from the automotive industry, have underpinned prices and kept overall sentiment constructive.
While demand signals from the auto sector are somewhat mixed, they remain broadly supportive. In China, vehicle sales climbed to 2.63 million units in May, led by passenger cars. At the same time, global tire manufacturers continued to expand capacity: Sailun Tire announced a $1.14 billion tire project in Egypt, adding significant output for passenger, truck, and off-road tires. Michelin retained its position as the world’s most valuable tire brand, while Giti Tire emerged as the fastest-growing. In addition, Pirelli extended its Formula 1 tire supply contract through 2028, further reinforcing long-term demand visibility for the rubber industry.
