Physical rubber markets decline on rising supply, weak demand

London – Rubber markets continued to decline over the two weeks to 26 Aug, amid weak demand from China and global economic downturn.

Physical rubber prices were under pressure as key markets saw a rise in supply and weak demand from bulk buyers.

The market in India recorded a six-month low towards the end of last month, with rubber prices closing 6.0% lower on 26 Aug compared to two weeks before.

Futures market also continued to decline, albeit at a lower pace, amid a fall-back in crude oil prices. 

Shanghai contracts for September delivery closed 1.3% lower compared to 12 Aug, amid fears of further interest rate hikes and a weaker Chinese economy.

In Japan, active contracts erased early gains and ended 1.4% lower on the Osaka Exchange, while Singapore's SICOM rubber futures fell nearly 5% over the same period.