News and Articles

• Natural rubber futures traded around 240 US cents per kilogram on September 1, near 2013 highs
• Kottayam RSS4 slipped to 27,300 rupees per quintal and RSS5 to 26,900 rupees by September 3
• Bangkok RSS grades tracked lower by similar rupee equivalent amounts in a small pullback
• Industry projections placed 2026 global output near 15.3 million tonnes against 15.4 million demand
• Chinese tire producers ramped up buying ahead of Golden Week in early October

Natural rubber prices in Asia moved into the first week of September 2026 near multi year highs, with global futures holding close to their strongest level since 2013 and cash markets in India and Thailand adjusting to a small pullback from the recent peak. On September 1, futures traded around 240 US cents per kilogram, still elevated on the back of tight global supply and continued strength in Chinese and Indian consumption. The pullback in the following sessions was small enough to leave rubber up more than 10 percent for the month and about 33 percent for the year.

The Kottayam market in Kerala, the reference cash market for Indian natural rubber, showed a small softening trend by September 3. RSS4 slipped by about 100 rupees per quintal to 27,300 rupees, while RSS5 eased by a similar amount to 26,900 rupees. Latex at 60 percent concentration eased by 105 rupees to 20,185 rupees per quintal. In the Bangkok reference market, RSS4 and RSS5 also moved lower by 124 and 123 rupee equivalent respectively as traders locked in profits ahead of the seasonal peak tapping window in Southeast Asia. ISNR20, the block rubber grade used by tire compounders, held steady at 25,500 rupees per quintal at Kottayam.

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The wider global balance stayed tight. Industry projections placed 2026 global output near 15.3 million tonnes against demand of about 15.4 million tonnes, keeping the market in a structural deficit. Thailand, the largest producer, faced rainfall disruption at key tapping regions in the south, while output from Indonesia and Vietnam was expected to decline this year. India, China, and Malaysia were the only major producers set to grow output through 2026.

Tire and automotive demand remained the main pull factor. Chinese passenger car and heavy truck tire producers stepped up buying ahead of the October 1 to 7 Golden Week holiday, while Indian tire majors continued to build inventory to meet festive season replacement demand. West African supply out of Cote d Ivoire, now the world's third largest producer, was ramping up but not fast enough to close the structural gap in the short term.

For procurement teams in tire, latex glove, footwear, and adhesive sectors, the near term guidance is to keep coverage on rolling contracts rather than chasing spot cargoes at the top of the range. Latex buyers in South and Southeast Asia should watch weather driven disruptions in Thailand carefully, as any further rainfall event could tighten spot supply within days. Compound producers using ISNR20 and TSR20 grades should confirm October arrival before Chinese Golden Week freight competes with movement. Automotive tire brands sourcing from India should also expect firmer landed offers as long as the global deficit story holds through the fourth quarter.