19 Dec 2022
Four-week rally comes to end as most Far East markets register declines
Tokyo – Natural rubber (NR) futures generally closed slightly lower during the trading week ended 16 Dec, amid diverse trading activity.
In Japan, OSE futures was marginally up compared to the week before, amid active May-2023 contracts, Japan's JPX exchange said in its the weekly trading report.
In China, however, SHFE and INE futures were down slightly, less than 1%, while Sicom futures dropped 1.9%, according to the JPX review, issued 19 Dec.
The report linked the lower prices to several rubber futures contracts hitting “over-bought levels” and profit-taking activities across markets.
This brought an end to an NR pricing rally over the past four weeks which, noted JPX, led to ‘over-buying conditions above 70% of RSI (relative strength index).’
Factors behind the rally included: the rainy season in producing countries; China's relaxation of Covid restrictions; and higher demand for tires ahead of the Chinese New Year holiday in January 2023.
Subscribe for unlimited access. A subscription to European Rubber Journal includes:
Already a subscriber? Log in here
