October Natural Rubber Market Fluctuates, Shows Slight Increase Overall

October 31 News

According to the commodity market analysis system, the Chinese natural rubber spot market experienced fluctuations in October, with a slight overall increase. By October 31, the price of natural rubber in the Chinese market was around 14,750 CNY/ton, up 0.57% from 14,666 CNY/ton at the beginning of the month, and down 1.39% from the peak of 14,958 CNY/ton within the cycle. As of October 31, the mainstream prices for 24-year Guangken, Baodao, and Haibao full-cream rubber in the Qingdao area were between 14,650 and 14,950 CNY/ton.

On one hand, the continuous decline in natural rubber inventory and the sustained support of natural rubber raw materials are favorable for the natural rubber market. On the other hand, China's real estate sector continues to drag down rubber demand. The rush to export and policy stimulus in the automotive market have led to a situation where demand is being front-loaded, resulting in stable but slightly fluctuating production levels in downstream tire and product manufacturing. Factories have a moderate willingness to restock and are resistant to high-priced supplies, which drags down the natural rubber market.

In October, natural rubber raw material prices edged slightly higher amid strong market conditions, providing cost-based support for the rubber market. As of October 31, Thailand’s latex price stood at 56.00 Thai baht per kilogram, up 2.19% from 54.80 Thai baht per kilogram at the end of September. Earlier in October, typhoons continued to disrupt tapping activities in China’s Hainan and Yunnan provinces, as well as major Southeast Asian production regions like Thailand and Vietnam, further bolstering rubber prices. However, as overseas weather conditions improved later in the month, expectations grew that rubber supply would gradually resume, leading to a stabilization of raw material prices at elevated levels.

In October, natural rubber inventories continued their downward trend, providing strong support to the natural rubber market. As of October 26, 2025, the combined inventory volume of bonded and general trade rubber in the Qingdao region totaled 432,200 tons, down 5.32% from 456,500 tons at the end of September.

In October, the downstream semi-steel tire production slightly increased, providing support to the natural rubber market. As of October 24, the operating rate of semi-steel tire production in Chinese tire enterprises was around 74%; in Shandong region, the operating rate of all-steel tire production in tire enterprises slightly rose to about 66%.

Market Forecast: Natural rubber raw material prices are expected to ease from their current high levels, while downstream buyers remain reluctant to stockpile at elevated prices. Meanwhile, port inventories of natural rubber continue to decline overall. Taken together, we anticipate that the natural rubber market will experience significant volatility in the coming period.