Rubber futures rise for five consecutive sessions, approaching 407 yen as tight supply and crude oil support the market

⑴ On Tuesday, rubber futures on the Osaka Exchange rose for the fifth consecutive trading day, with the October contract closing up 6.5 yen to 407 yen per kilogram, an increase of 1.62%. Tight supply kept spot prices firm, and rising crude oil prices further reinforced bullish sentiment. The September rubber contract on the Shanghai Futures Exchange rose by 180 yuan to 17,395 yuan per ton, an increase of 1.55%; the June butadiene rubber contract increased by 1.95% to 15,925 yuan per ton.⑵ Thailand's benchmark export-grade RSS3 smoked sheet rubber and block rubber prices rose by 1.33% and 1.49% respectively. Oil prices climbed nearly 2% on Tuesday due to apparent stagnation in efforts to end the US-Iran war. Natural rubber often competes with synthetic rubber made from crude oil for market share and, as a result, frequently tracks oil price movements.⑶ According to a report from CITIC Futures, after the May Day holiday in China, Vietnam and Thailand may begin large-scale latex tapping, and rubber supply is expected to rise. Traders are also watching the China-Africa zero-tariff agreement on imports, effective May 1, which will impact rubber imports from Côte d'Ivoire. On the Singapore SICOM platform, the May rubber contract fell 0.2% at the close to 212.3 US cents per kilogram.