5 Dec 2023
JPX: Market sentiment has “turned bearish” suggesting continued downward pressure in the coming weeks
Tokyo – Natural rubber (NR) futures declined during the trading week ended 1 Dec, primarily on “long-liquidation activities by speculative and commodity funds,” Japan Stock Exchange (JPX) reported.
In Osaka, Japan, OSE’s new active May-2024 rubber contracts dropped 3.5% week-on-week, while SHFE and INE rubber futures fell 2.7% and 3.4% respectively.
In Singapore, meanwhile, active rubber futures for March delivery declined 3.9% week-on-week, with trading volumes dropping compared to the week before.
“Substantial selling” was observed on China's SHFE and INE exchanges, according to the latest JPX weekly trading report, issued 4 Dec.
The selling, it noted, was influenced by concerns over an increase in respiratory illnesses in China, which heightened fears of a potential resurgence of a pandemic.
Furthermore, weaker manufacturing PMI figures from China hinted at a slowdown in demand for vehicle sales, the report added.
Market sentiment, commented JPX, has “turned bearish” due to these declines, suggesting continued downward pressure in the coming weeks.
Selected NR futures price trends on major trading exchanges
|
Exchange |
Commodity |
Delivery |
Week to 24/11 |
Week to 01/12 |
% Change |
|
Osaka |
RSS3 |
May ‘24 |
266.0 (JPY) |
256.7 (JPY) |
-3.5% |
|
SHFE |
SCR/RSS |
Jan ‘24 |
13,920 (CNY) |
13,545 (CNY) |
-2.7% |
|
INE |
TSR |
Jan ‘24 |
10,590 (CNY) |
10,230 (CNY) |
-3.4% |
|
SICOM |
TSR20 |
Mar ‘24 |
151.2 (US$c) |
145.9 (US$c) |
-3.9% |
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