5 Dec 2022
Monsoon season, high year-end demand to support NR prices in Far East markets
Tokyo – Natural rubber futures closed higher across all major rubber exchanges in the final week of November, amid relaxed China Covid measures and firm demand.
The prices gained after the news that China slightly eased its zero-Covid policy, said Japan Stock Exchange JPX in its weekly rubber review 5 Dec.
Major cities in Beijing and Shenzhen, it said, no longer require negative tests for public transportation.
In addition, tight supply due to the rainy monsoon season in producing countries and the year-end demand for rubber before the Chinese New Year in February are also expected to support rubber prices.
During the week ended 2 Dec, OSE rubber futures were up 2%, while China’s SHFE and INE futures increased by 1% and 3%, respectively.
SICOM futures rallied 5.7% “amid tire consumers' buying and some speculative short-covering,” according to JPX.
Furthermore, weaker US dollar supported dollar-based solid commodities prices, which JPX said “spilled over to the rubber futures prices”.
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