Supply disruptions intensify, natural rubber prices rise across the upstream and downstream

After hitting a more than nine-year high on September 30, natural rubber futures continued their upward trend. On October 9, the main natural rubber contract RU2701 on the Shanghai Futures Exchange closed the day session up 2.89% at 20,645 yuan per ton. On the spot side, according to market monitoring by Baiinfo, the average domestic natural rubber price on October 9 was 19,700 yuan per ton, up another 56 yuan per ton from the previous trading day, with a year-to-date gain of 28.27% and a year-on-year rise of 31.45%. GF Futures believes that global natural rubber supply has entered a peak region, and combined with expectations of reduced output triggered by El Nino events, the sensitivity of rubber prices to climate disruptions has been significantly amplified. Under cost pressure, tire companies downstream in the rubber industry chain have successively launched their fourth round of concentrated price increases this year. Since September, more than 60 tire companies have issued over 70 price increase notices.