Natural rubber pricing recovery stalls ahead of China holiday
2 Oct 2023
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Commodity market expected to trade “sideways”, with a relatively quiet week ahead...
Tokyo – The steady recovery in natural rubber futures pricing seen over recent weeks seems to have stalled – for the time being at least.
During the trading week ended 22 Sept, rubber futures dipped across major Far East exchanges, as China prepared for its Golden Week holiday.
The week-on-week decline was driven by “long liquidation as funds sold off or squared positions” ahead of the week-long break, Japan Stock Exchange (JPX) reported.
In Osaka, Japan, OSE rubber futures for February delivery fell 1.1% week-on-week, according to JPX's latest weekly review, issued 2 Oct.
In China, Shanghai rubber futures closed 1.6% lower than the week before while INE contracts for November delivery fell 1.8%, the report added.
In Singapore, SICOM’s active January 2024 contract fell 1.1% week-on-week “in response to long liquidation during moderately quiet trading.”
Despite the price decrease, overall market sentiment in Singapore has remained 'steady', according to JPX.
Overall, the Tokyo-based said last week's price decreases were being viewed as a technical correction” following a period of "overbought" conditions.
JPX expects rubber markets to trade “sideways”, with a relatively quiet week ahead of the closure of the Chinese market from 29 Sept to 6 Oct.
Selected NR futures price trends on major trading exchanges
Exchange
Commodity
Delivery
Week to 22/09
Week to 29/09
% Change
Osaka
RSS3
Feb ‘24
234.6 (JPY)
231.9 (JPY)
-1.1%
SHFE
SCR/RSS
Jan ‘24
14,120 (CNY)
13,890 (CNY)
-1.6%
INE
TSR
Nov ‘23
10,770 (CNY)
10,580 (CNY)
-1.8%
SICOM
TSR20
Jan ‘23
144.0 (US$c)
142.4 (US$c)
-1.2%
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