Rubber pricing declines on weak market sentiment

London – Physical and future rubber markets in Asia continued on a downward track in the week of 2-6 March.

According to Thai-based International Rubber Consortium (IRCo), Tokyo and Shanghai Rubber Futures Exchange (SHFE) were mainly weighed down by weak market sentiment and low investor's confidence.

A Chinese government’s decision to lower its growth target for 2016 to 7.0 percent, below 2014 growth rate of 7.4 percent negatively affected the market, with TOCOM and SHFE rubber futures losing more than two percent.

India-based Geofin commodity traders, also reported a decline in rubber futures on the NMC (National Multi-Commodity Exchange) with the near month March rubber futures nearly one percent down on 9 March.

Amid the low market confidence and declining demand, rays of good news were observed from the two-day India Rubber Meet, held in Kerala, India on 4 March.

At the meeting, secretary general of the Association of Natural Rubber Producing Countries (ANRPC), Sheela Thomas forecast NR production to grow by 3.2 percent this year. Demand was also expected to rise from 7.4 million tonnes last year to 7.8 million tonnes across ANRPC countries.