Rubber futures mixed as traders adjust positions

Tokyo – Natural rubber futures closed the trading week ended 26 Jan with mixed results across major rubber exchanges.

In Japan, OSE rubber futures rallied 5.8%, driven by fresh speculative buying amid a weaker Japanese Yen against the US dollar, said Japan Exchange Group (JPX).

By contrast, China’s SHFE and INE futures fell 0.7% and 0.6%, respectively, influenced by “long liquidation and speculative selling”, JPX noted in its latest review of NR trading.

In Singapore, meanwhile, SICOM futures dropped marginally in “quiet trading amid profit-taking,” added the weekly report issued 29 Jan.

According to JPX, traders have been adjusting their positions ahead of the Chinese New Year holidays in February.

This, it added, will contribute to potential reductions in trading volume in the coming weeks.

JPX went on to note recent industry developments, including a report that Cote d'Ivoire had overtaken Vietnam as the world's third largest world NR producer in 2023.

With output of just under 1.5 million tons, Cote d'Ivoire overtook Vietnam which produced 1.39 million tons, the Association of Natural Rubber Producing Countries (ANRPC) estimated.

The top two NR producers remained unchanged, with Thailand at 4.87m tons and Indonesia at 3.2 million tons, noted JPX – again citing ANRPC figures.

Other significant developments, said JPX, included: China's Wanli Tyre plans to build a new rubber factory in Cambodia; a Bridgestone upgrade project at its tire plant in Wuxi China; and a Yokohama Rubber upgrade of its tire plant in The Philippines.

JPX also noted that the US had reported a more robust than expected fourth quarter GDP at 3.3%, while the crude oil WTI settled higher at $78.23 per barrel.

The latter trend, said JPX, reflected "stronger economic data, tension in the Red Sea, and optimism regarding China's economic recovery."