Supply Disruptions Fuel Price Hikes Across Natural Rubber Supply Chain

Following a record high above nine-year levels on September 30, natural rubber futures continued their upward trend. On October 9, the main contract RU2701 on the Shanghai Futures Exchange rose 2.89% in daytime trading to settle at 20,645 yuan per ton. In spot markets, according to Baichuan Yingfu monitoring data, the domestic average price of natural rubber was 19,700 yuan per ton on October 9, up 56 yuan from the previous session. Year-to-date gains have reached 28.27%, with a year-on-year increase of 31.45%. Futures analysts believe that global natural rubber supply has entered a peak zone, and combined with production cut expectations triggered by El Niño, price sensitivity to climate disruptions has been significantly amplified. Under cost pressures, tire manufacturers downstream in the rubber industry have launched their fourth round of collective price hikes this year. Since September, over 60 tire companies have issued more than 70 price increase notices.