Rubber markets mixed as wintering season begins

London – Far East natural rubber (NR) markets have provided a mixed picture over recent weeks, with rubber futures pricing generally down but physical prices on the rise.

In Shanghai, for instance, the most heavily traded rubber futures, for May delivery, closed at Yuan12,490/tonne on 17 Feb, nearly 4% lower than the Yuan13,000/tonne registered 13 Jan.

In Japan and Singapore, meanwhile, Osaka RSS3 NR futures and SGX TSR20 were marginally down, over the five-week period.

Market sentiment remains bearish and further downside pressure is anticipated, amid worries about China’s economic recovery, according to a recent NR trend report by Japan’s JPX exchange.

Physical markets, on the other hand, have been buoyed by higher demand and tight supply, amid wintering season, while latex prices rose 11% on reports of increasing number of Covid cases.