NR futures gain as China sees ‘faster-than-expected’ growth

Tokyo - World natural rubber (NR) futures closed higher in all major exchanges during the trading week ended 21 April, Japan's JPX  has reported,

The pricing gains were supported by optimism over economic recovery in China, which recorded a “faster-than-expected” 4.5% growth in GDP for the first quarter.

In addition, raw-materials shortages observed in Indonesia pushed NR prices higher, JPX noted in its weekly trading review, issued 24 April.

On Japan's Osaka exchange, September delivery contract prices rose marginally, up 0.3% to Yen210.1 amid moderate trading activity.

Positivity was more marked in China, where September SCR/RSS futures on the SHFE rose 2.3% on the prior week to CNY11,980.

Also in China, July TSR futures prices on the INE exchange came in at CNY9,765, likewise 2.3% above the prior-week closing level.  

In Singapore, SGX SICOM’s July delivery contracts rose marginally to $137.2, as trading volume surged by over 50% to 21,588 contracts.

While futures markets remained steady, demand in physical markets were strong, the Japanese exhange's report continued.

In Singapore, physical rubber was traded at a $0.7 premium over SICOM's front-month futures price, “making the forward curve almost flat”, said JPX.

Some producers, it added, struggled to secure enough cup-lump/latex for their monthly production, pushing rubber prices up over the past two weeks.