Rubber markets uncertain as prices meander at recent lows

Tokyo – Natural rubber (NR) futures delivered "mixed results" during the trading week to 28 July, Japan Exchange Group (JPX) has reported. 

Pricing trends exhibited "uncertain direction as prices struggled at their recent lows," JPX noted in its weekly review of trading across major Far East exchanges.

On the Osaka exchange in Japan, OSE rubber futures pricing "broke its crucial support level of JPY200: trading at its nearly two-year low," said the report issued 31 July.

In China, Shanghai Futures Exchange (SHFE) pricing for RSS grades remained steady overall, while INE TSR closed 2.1% higher amid 'short-covering' trading.

On Singapore’s SICOM exchange, NR futures grew by around 3%, led by "arbitrage and new buying activities," the report also noted.

JPX linked current NR pricing trends to "weak demand for the commodity in China and a high unofficial rubber inventory, estimated at more than 900,000 tonnes."

Elsewhere, JPX noted that Laos and Vietnam had signed an MOU to raise rubber quality and enhance sustainable development.

Laos exports 85% of its produced rubber to Vietnam and China, according to the Japanese exchange.

Tokyo-based JPX went on to report on the launch of synthetic BR rubber futures and options on the SHFE on 28 July.

According to the review, first-day trading volumes were recorded at 92,411 contracts with an OI [open interest] of 20,861.

Selected NR futures price trends on major trading exchanges