Rubber Price Monitor: Markets rally

London – Natural rubber (NR) prices tracked an upward trend in recent weeks as data from major world economies, particularly China, lifted investor sentiments.

Market reacted positively to an uptick in the Chinese automotive sales and an 11.5% year-on-year increase in the country’s industrial profits in the month of June.

Having shrunk 6.8% in the first quarter, the Chinese economy grew 3.2% in the second quarter, raising optimism for a global recovery.

In Shanghai, most active NR contracts for October delivery were up 5.12% during the two weeks to 7 Aug.

Rubber futures in Japan, which transferred from Tocom to Osaka Exchange (OSE) on 27 July, reached a four-month high since late April, closing at Yen169/kg on 7 Aug. 

Despite having been transferred to OSE, TSR20 prices have not been updated by the stock exchange.

Latex prices also made gains during the two-week period, reversing a downward trend in July. 

During the month of July, prices of NR, both in the futures and physical markets, moved along a recovery path with the notable exception of latex market. 

In its July NR update, the Association of Natural Rubber Producing Countries (ANRPC) said prices could continue with the marginal recovery in the short-term, supported by an anticipated growth in demand, a fall in the inventory of the Shanghai Exchange, weak dollar, and crude prices.

Shanghai SHFE ru2010: Yuan 11,225/tonne (7 Aug) compared to Yuan10,675/tonne (24 July)– up 5.12%

OSE RSS3 nearby month: Yen169.3/kg compared to Yen159.0/kg  – up 6.4%

Singapore SGX TSR20: $1.35/kg compared to $1.19/kg – up13.4%

Kuala Lumpur SMR20: $133.40/kg compared to $119.85/kg – up 11.3%

Kuala Lumpur Latex: $114.46/kg compared to $109.10/kg – up 4.9%