China EV boom, poor Thailand harvest inflate natural rubber prices

Futures rise highest in nearly 3 years on supply concerns for tire material

20240201N EV tire

Electric vehicles are a fast-growing segment of China's auto market, the world's largest. © Reuters

WATARU HAMANO, Nikkei staff writer

TOKYO -- Natural rubber prices have climbed to a level not seen in nearly three years on growing demand from China's electric vehicle industry coupled with poor yields in Thailand, a leading producer of the tire material. 

Benchmark natural rubber futures traded for 283.60 yen ($1.93) a kilogram as of Thursday on the Osaka Exchange. The price was up 11% from the end of 2023.

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