Rubber futures reach two-month high amid rising year-end demand

Tokyo – Natural rubber futures rose in the trading week ended 9 Dec, buoyed by relaxed Covid measures in China and a cyclical rise in demand before the year-end.

In Japan, OSE rubber futures closed 6.1% higher week-on-week, while China’s SHFE and INE futures increased 2.9% and 2.2%, respectively, said Japan's JPX exchange  in its weekly report 12 Dec.

Similarly, Sicom futures in Singapore rose 3.5%, reported JPX, linking the rise partly to China’s easing of Covid-19 restrictions despite rising infection cases.

Since 7 Dec, the Chinese government has allowed people to travel within the country without being required to produce a negative test result.

According to JPX, trading volumes on most exchanges fell from the previous week, reflecting sluggish trading activities before the yearend holidays.

Futures prices, it added, reached a two-month high as physical rubber demand grew ahead of the Chinese new year on 22 Jan 2023.

Prices were also generally supported by China's “solid stock market”, which has held momentum for three consecutive weeks, as well as expectations of steady economic growth in the country, JPX noted.