Natural rubber price tracker: Decline continues

London – Natural rubber (NR) prices have performed weakly over the recent weeks as Covid-19 pandemic impacted all global markets. 

Prices plunged further across all the markets observed by ERJ over the two weeks to 20 March, with ru2009, the most-active rubber contract on the Shanghai futures exchange, registering a 10% decline (see below).

Prices seem set to stay under pressure with the impact of the global pandemic on demand being compounded by the drag-down effect of a decline in crude oil prices – exacerbated by a producers’ dispute between OPEC and Russia. 

Currently, the only bright spots on the horizon for suppliers are some early signs of a pick-up in Chinese industrial activity – especially automotive – and a possible supply-side reduction over the coming months. 

Shanghai SHFE ru2009: Yuan 10,055/tonne (20 March) compared to Yuan 11,175/tonne (6 March) 

Tokyo Tocom RSS3 back month: $154.00/kg compared to Yen168.3/kg* 

Tokyo Tocom TSR20 back month: $138.5/kg compared to Yen150/kg*

Singapore SGX TSR20: $1.17/kg compared to $1.29/kg 

Kuala Lumpur SMR20: $124.56/kg compared to $131.63/kg 

Kuala Lumpur Latex: $101.45/kg compared to $110.04/100kg
 

*Japan’s Tocom was closed to mark the spring solstice on 20 March and figures reflect prices at the end of business on 19 March.