The global rubber market rallied at the start of the week's trading session, with Japanese futures prices surging to near 340 yen/kg. This upward trend was driven primarily by the positive performance of the Japanese stock market, amid a significant improvement in investor sentiment following important political changes.
World Rubber Prices
At the close of trading on February 10th, rubber futures prices on major exchanges rose slightly to sharply. In China, the March 2026 rubber contract increased by 0.1%, equivalent to 15 yuan, to 16,155 yuan/ton.
In the Thai market, the March 2026 rubber futures contract edged up 0.5%, reaching 64.1 baht/kg. Notably, in Japan, the March 2026 rubber futures contract surged by 2.7%, equivalent to 8.8 yen, to 338 yen/kg, approaching the important psychological threshold of 340 yen/kg.
According to Reuters, the surge in Japanese rubber prices was directly supported by the stock market's breakout, with the Nikkei index closing at a record high after rising 5.7% to 57,337.07 points. This positive sentiment stemmed from Prime Minister Sanae Takaichi's overwhelming victory in the February 8th election, bolstering expectations of policy stability and economic recovery prospects.
On the Osaka Stock Exchange (OSE), the July 2026 rubber contract rose 1.43% to 354.9 yen/kg. Meanwhile, in China, the May rubber contract on the Shanghai Futures Exchange (SHFE) increased 0.84% to 16,245 yuan/tonne. However, the March butadiene rubber contract – a product closely linked to the tire manufacturing industry – fell slightly by 0.12% to 12,810 yuan/tonne, reflecting concerns about medium-term demand.
The Japan Exchange Group stated that recent volatility in financial markets has triggered a wave of speculative selling and liquidation of long positions, particularly in precious metals such as gold and silver. This has led to a sharp decline in open contracts across many exchanges, indicating a widespread profit-taking trend after a period of rapid growth.
In the physical market, rubber inventories at warehouses supervised by SHFE remained virtually unchanged amid the upcoming Lunar New Year holiday. However, the long-term upside outlook for rubber still faces significant risks as demand for electric vehicles – one of the key drivers of rubber consumption – shows signs of weakening.
Stellantis' announcement of a strategic adjustment cost of €22.2 billion, coupled with a reduction in its electric vehicle development ambitions, further fueled concerns about future sales prospects. Stellantis shares at one point plummeted by as much as 30%, reflecting market pessimism amid slowing investment in the electric vehicle sector, particularly in light of the Trump administration's subsidy cuts and lower-than-expected consumer demand.
In Singapore, the March rubber contract on the SICOM exchange also rose 0.9%, to 189.7 US cents/kg, indicating a recovery trend spreading globally, although the upward price momentum remains unsustainable.
Domestic Rubber Prices
Contrary to the vibrancy of the international market, domestic rubber purchase prices today remained stable, reflecting the cautious sentiment of businesses regarding the uncertain prospects for exports and global consumption demand.
At Binh Long Rubber Company, the factory purchase price remained at 432 VND/degree TSC/kg, while the price at the production team was 422 VND/degree TSC/kg. Mixed latex with a DRC content of 60% remained stable, purchased at 14,000 VND/kg. Ba Ria Rubber Company continued to quote the price of liquid latex at 420 VND/degree TSC/kg, applicable to TSC degrees from 25 to under 30, coagulated DRC latex fluctuating at 14,600 VND/kg, and raw latex at 18,100 VND/kg.
At MangYang Company, the price of liquid latex was recorded at around 379-384 VND/degree TSC/kg, while the price of mixed coagulated latex fluctuated from 345-393 VND/degree DRC/kg. Phu Rieng Company maintained a stable price of mixed latex at 390 VND/degree DRC and the price of liquid latex at 420 VND/degree TSC/kg.
The fact that domestic rubber prices have not fluctuated significantly indicates that businesses are prioritizing stability while closely monitoring developments in the international market. Given the weakening demand from the automotive industry, especially electric vehicles, the prospect of a sharp price increase in the short term remains uncertain. This necessitates caution in procurement and export strategies to mitigate risks from unpredictable global market fluctuations.
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