Natural rubber: Trading
Singapore, Osaka and Shanghai: three exchanges, no single benchmark
What this tab covers How and where it is bought and sold: who buys and sells, exchanges and benchmarks, contract types, the big trading houses and how prices are discovered.Rubber trades on several Asian exchanges rather than one global benchmark. Singapore Exchange's TSR20 contract anchors much physical pricing, the Osaka Exchange trades RSS3, and the Shanghai Futures Exchange contract is the most actively traded. Physical rubber moves from processors to tyre makers through dealers and merchants. Morgan notes that around 1970 ten tyre and rubber companies consumed nearly 75% of natural rubber while growing only 15%. Producer governments in Thailand, Indonesia and Malaysia have tried export curbs to support prices.
Where it is bought (buyers)
- Tyre makers in China, the US, Japan, India and Europe buy TSR and RSS on term contracts from processors and merchants
- China took 25.2%, the US 11.6%, Malaysia 10.6% (glove and processing industries), Japan 8.0% and India 6.7% of world import value in 2024 (UN Comtrade)
- Indian tyre makers buy RSS4 from Kerala dealers and import TSR from Vietnam, Indonesia and Cote d'Ivoire
Where it is sold (sellers)
- Thailand (35.9% of export value), Indonesia (20.9%) and Cote d'Ivoire (17.7%) in 2024 (UN Comtrade)
- Processors such as Sri Trang and Halcyon Agri sell to tyre makers worldwide
- Vietnam and Cambodia sell much of their output to China
Exchanges and benchmarks
| Venue | Contract | Notes |
|---|---|---|
| Singapore Exchange (SGX) | SICOM TSR20 and RSS3 futures | main reference for physical TSR pricing outside China |
| Shanghai Futures Exchange and Shanghai International Energy Exchange | natural rubber futures; TSR20 futures (INE) | most liquid rubber futures by volume |
| Osaka Exchange (Japan Exchange Group) | RSS3 futures | historic benchmark, now smaller |
| India | no active rubber futures | Rubber Board's daily Kottayam RSS4 price is the reference |
Contract types
- Monthly or quarterly term contracts between processors and tyre makers, priced off SGX TSR20 or RSS3 plus a premium
- Spot cargoes FOB Bangkok, Belawan or Abidjan
- Domestic dealer purchases of RSS sheets from Kerala growers
Top trading houses
- Sri Trang
- Halcyon Agri (Corrie MacColl)
- Southland Rubber
- Von Bundit
How prices are discovered
- SGX SICOM TSR20 settlement
- SHFE natural rubber futures
- ANRPC monthly physical price averages (SMR20, STR20, RSS3, Kottayam RSS4)
- Rubber Board daily prices (Kottayam, Kochi)
- World Bank Pink Sheet