Rubber futures climbed above 205 US cents per kilogram, reaching their highest levels since December 2024, driven by seasonal supply constraints and stronger demand expectations. Buyers are preparing for the February–May low-production period in Southeast Asia, the key producing region, before harvesting typically accelerates into late summer. During the annual ‘wintering’ season, cooler or drier conditions curb latex output, and tapping activity is significantly reduced.
Adding to the tightness, heavier-than-usual rainfall in major producers such as Thailand and Indonesia is reportedly disrupting raw-material flows and further constraining supply. On the demand side, the Association of Natural Rubber Producing Countries (ANRPC) recently projected that global consumption will outstrip production for a sixth straight year in 2026, underpinned by robust growth in the automotive sector worldwide. Global output is expected to increase 2.4% to 15.2 million tons, while demand is forecast to rise 1.7% to 15.6 million tons.
