17 Oct 2022
Weekly report by JPX notes “slowing economic growth” in China
Tokyo – Natural Rubber (NR) futures closed lower in Far East markets during the trading week ended 14 Oct, despite supply concerns amid heavy rains.
In its latest weekly update, the Japan exchange JPX linked the decline to “speculative selling pressures” after the Chinese Golden week holidays earlier in the month.
In Japan, OSE rubber futures fell 2.2% with light trading volume, while Singapore’s Sicom rubber futures registered a 4.5% drop amid active trading.
With new speculative selling, China’s SHFE and INE rubber futures shed 2.9% and 2.6%, respectively.
News of heavy rain and floods in some regions of Thailand, Vietnam, and southern Indonesia, JPX said, did not help support rubber prices.
The report noted that the Chinese economy “is struggling with slowing economic growth amid unfavourable conditions.”
These, it said, include "persisting weak housing market, slowing vehicle sales, continuing zero-Covid policies, and rising trade tension with the US on semiconductor chips."
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