Natural rubber markets continue to slide

London – Lower crude prices, weaker Nikkei, extended Covid lockdowns in Shanghai and a slowdown in the Chinese economy have led to a decline in natural rubber markets over the two weeks to 13 May.

Rubber futures on Japan’s Osaka Exchange slid to an eight-week low on 12 May, while Singapore futures for July delivery were down 4.4% over the two-week period,

Shanghai rubber futures for September delivery closed slightly lower than 29 April, following an extended Covid lockdown in the Chinese commercial capital and continued supply chain issues.

In its weekly rubber report, JPX said China's April passenger vehicle sales dropped a hefty 35.5% year-on-year due to supply chain constraints caused by resurgence of the Covid-19.

Weekly official rubber warehouse stocks reported mixed with SHFE up 3,557 tonnes and while Shanghai’s International Energy Exchange (INE) was down 6,230 tonnes.

Physical rubber prices remained firm in India as demand picked up following tight supply caused by rains in Kerala.

* Osaka Exchange was closed on Friday 29 April and figure reflects prices at close of day 28 April. Kottayam and Kuala Lumpur figures reflect prices for the week ending 27 April.