Rubber markets slide on weak demand, rise in supply

London – Rubber markets continued to fall over the four weeks to 9 Sept, with both physical and rubber prices posting significant declines during the period.

SICOM rubber futures posted the sharpest decline, at 12.5%, amid concerns of weak demand and Covid resurgence in China.

Shanghai contracts for January delivery and Osaka near-month prices fell 4.8% during the four-week period, reflecting bearish sentiment in the market.

In its late August weekly NR report, Tokyo-based stock exchange JPX said the prospect of further interest rate hikes, a weaker Chinese economy and fear of a global recession kept buyers away from the market.

Physical rubber markets also posted sharp declines during the period, as supply eased, and demand remained tepid.

Favourable weather, a weak gloves market and subdued demand from China continued to weigh on physical markets, leading to a 19-month low in key Kerala natural rubber markets.