Rubber price on July 9: World prices decrease along with oil prices, domestic prices remain stable

World rubber prices fall following the decline in oil prices

At the end of the trading session on July 9, rubber futures prices on major exchanges in Asia simultaneously decreased. In Japan, the rubber futures contract for July on the Osaka Exchange (OSE) decreased by 0.3% (equivalent to 1 Yen), down to 310.9 Yen/kg.

In China, rubber prices on the Shanghai Futures Exchange (SHFE) fell more sharply, losing 1% (equivalent to 140 yuan), to 13,845 yuan/ton. Meanwhile, rubber futures prices for August delivery in Thailand also fell 0.7%, to 72.62 baht/kg.

The main reason is the decline in crude oil prices on the world market. After OPEC+ unexpectedly announced a plan to increase production beyond expectations in August, Brent crude oil prices fell slightly by 0.13% to $68.21/barrel. This development puts pressure on energy-related commodities, including rubber - the main raw material for the tire and synthetic rubber industry.

Domestic market prices remain stable, no new fluctuations recorded

Contrary to the downward trend in the world, the domestic rubber market continues to maintain stable prices at major purchasing companies. According to Ba Ria Rubber Company, the price of liquid latex remains at 405 VND/TSC degree/kg (applied to latex with TSC degree from 25 to under 30), DRC coagulated latex fluctuates at 13,500 VND/kg, and raw latex remains at 17,200 - 18,500 VND/kg.

At Mang Yang Rubber Company, the price of grade 1 latex remains at 401 VND/TSC/kg, grade 2 at 397 VND/TSC/kg. Grade 1 and 2 mixed latex are at 409 VND/DRC and 359 VND/DRC, respectively.

Phu Rieng Company continues to purchase mixed latex at 385 VND/DRC and liquid latex fluctuates around 420 VND/TSC. Meanwhile, Binh Long Rubber Company lists liquid latex at 386 - 396 VND/TSC/kg; mixed latex with 60% DRC is purchased at 14,000 VND/kg.

Summary

On July 9, world rubber prices fell due to the impact of oil prices and OPEC+’s policy of increasing production, while the domestic market remained stable. Although there have been no signs of major fluctuations, the trend of oil prices in the coming time is forecast to continue to affect global rubber prices. Therefore, the domestic market also needs to closely monitor international factors to make timely adjustments.