23 Jan 2024
All rubber exchanges report higher trading volume, as tire demand “remains strong”
Tokyo – Natural rubber futures closed the trading week ended 19 Jan with gains across all major exchanges, according to Japan Exchange Group (JPX).
The gains were primarily driven by strong physical demand ahead of the upcoming Chinese new year holiday in early February.
All rubber exchanges reported higher trading volume with higher prices, signalling fresh buying interest and positive market sentiment, JPX reported 22 Jan.
In particular, consumer demand and renewed buying interest from China contributed to the upward trajectory of prices.
According to JPX, physical buying from tire consumers “remains strong”, as they are willing to pay “a 10-15 cent premium” over SICOM spot prices.
The interest from tire makers, the report noted, helped maintain firmer futures prices throughout the week.
Furthermore, with the winter season setting in in the northern hemisphere, concerns about potential supply shortages also influenced market sentiment.
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