Natural rubber futures mixed as prices consolidate

Tokyo – Natural rubber futures closed the trading week ended 15 Sept with a mixed performance across major Far East exchanges, according to Japan Stock Exchange (JPX).

In Osaka, Japan, OSE rubber future for February delivery gained 1%, while Shanghai futures closed “slightly higher” week-on-week, said JPX’s weekly report 18 Sept.

By contrast, China’s INE futures for November delivery decreased by 1% alongside “a sharp drop in trading volume led by light profit-taking”. 

Singapore’s SICOM continued its strong performance of recent weeks: a 2.5% week-on-week increase in TSR20 futures pricing “reflecting ongoing bullish market sentiment.”

According to JPX, there have been “some position adjustments” in the rubber market following a rally in recent weeks. 

This has led to an “expectation of price consolidation as the market takes a breather,” said the Tokyo firm's latest review. 

Furthermore, commodity funds, often the primary buyers on China's SHFE and INE exchanges, "have slowed down their pace but are maintaining their long positions."

Nevertheless, JPX noted overall ‘optimism’ in the market for a “gradual economic recovery in China”, following a recent interest-rate cut by the country.

Vehicle sales improved 8% month-on-month in August “positively impacting rubber prices”, the Japanese exchange pointed out.

Additionally, it said, heavy rains in the southern regions of China, including Guangzhou, Hong Kong, and Hainan, might also have contributed to stronger pricing.

Selected NR futures price trends on major trading exchanges