Rubber markets close higher as Shanghai lockdown comes to an end

London – Rubber futures prices have fared well in the past two weeks with Shanghai’s full Covid lockdown coming to an end after two months.

On 27 May, rubber futures closed generally higher in most major rubber exchanges, with Japan’s Osaka Exchange closing 2.8% higher compared to two weeks before.

The SHFE rubber futures tracked a similar trend closing 2.9% higher than 12 May, while Singapore saw a sharp 4.4% increase over the two-week period.

According to the OSE weekly rubber review, the anticipation of easing lockdown in Shanghai at the beginning of June gradually improved market sentiment.

However, the recovering rubber supply of major producing countries like Thailand and Vietnam is likely to put downside pressure on the prices from June onwards.

Physical rubber prices were firm during the two-week period as supply remained tight ahead of India's monsoon season.